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CryptoQuant: BTC Demand Fades—Is Profit-Taking Just Getting Started?

CryptoQuant: BTC Demand Fades—Is Profit-Taking Just Getting Started?

Bitcoin’s blistering momentum just slipped into a cooler gear as fresh demand fell by roughly two-thirds from July’s peak, while whales locked in billions in profits—yet on-chain says the next meaningful battleground could be near $110K. Is this the start of a range, a final shakeout, or the base for the next leg higher? Traders who read the tape—not the headlines—could find cleaner entries and tighter risk.

What Changed: Demand Cools, Profit-Taking Climbs

Apparent BTC demand has declined from a July peak of 174,000 BTC to about 59,000 BTC, per CryptoQuant. Institutional accumulation is still positive but slower; a leading business intelligence firm “Strategy” reportedly cut 30-day purchases from 171,000 to 27,000. Spot Bitcoin ETF inflows are at a four-month low, with 30-day net buys near 11,000 BTC—levels last seen in late April.

CryptoQuant’s composite market readout shifted from “Extra Bullish” to “Bullish Cooldown” after BTC pushed past $120K, aligning with the recent price fade and consolidation risk.

Why It Matters for Traders

A bullish cooldown typically precedes sideways action or mild corrections. Without a rebound in demand signals, upside follow-through can remain limited. Meanwhile, new whale cohorts have realized at least $74B in profits since July 4, including a $9B single-day peak and about $2B on Aug 16. This profit-taking acts as a rolling supply overhang that dampens impulsive rallies.

Key Levels and On-Chain Context

BTC hovered near $116K at writing, with analysts flagging potential support around the $110K Trader On-chain Realized Price (T-ORP). In bull cycles, T-ORP often works as mean-reversion support because traders’ unrealized profit compresses toward zero, reducing the incentive to sell. If demand remains soft, expect a consolidation band between realized-price support and the recent breakout area. A decisive reclaim in spot + ETF demand would be the cleanest trigger for trend re-acceleration.

Actionable Playbook in a Bullish Cooldown

Bottom Line

Momentum cooled, but the market remains constructive if $110K holds and demand reappears. Let the data lead: if ETFs and on-chain demand inflect higher, the path opens for a renewed push; if not, treat bounces as range plays with disciplined risk control.

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