The recent Bitcoin price rally hit a snag in the last 24 hours, as the price dropped over 5% from its new all-time high of $123,231. This pullback was driven by investors looking to secure profits at record levels, with the price sitting at $116,700 at the time of writing.
Despite this correction, the market remains bullish overall, with indicators suggesting a short-term consolidation phase before another upward move. On-chain data from Glassnode shows that the pullback coincided with a significant spike in realized profits, totaling over $3.5 billion. Long-term holders accounted for $1.96 billion of these profits, while short-term holders contributed $1.54 billion. This level of profit-taking by long-term holders indicates a strategic move rather than panic selling, as these investors typically accumulate during bear phases and sell during market peaks.
Analysts like Mister Crypto believe that the correction could be a healthy development in the broader uptrend. He points to key support at the $110K level, where the EMA ribbons are aligned and June’s previous high. A bounce from this level could signal a continuation of the uptrend, potentially targeting $135K in the next leg up.
Institutional holdings also reflect long-term optimism in Bitcoin, with Bitcoin Treasury companies now holding more than half the amount of supply held in all ETFs combined. This suggests that institutional interest in Bitcoin is growing and that large players view it as a viable long-term store of value.
Overall, while the recent pullback may have spooked some investors, the underlying fundamentals of Bitcoin remain strong. The market is expected to continue its upward trajectory, with key support levels and institutional interest supporting a bullish outlook for the cryptocurrency.