Bitcoin News Today: Bitcoin's Broad Profit-Taking Signals Cautious Market Reset

All Bitcoin wallet cohorts are currently in distribution mode, according to recent data from Glassnode. This shift marks a notable reversal from the accumulation phase observed just over a week ago, when all groups were actively building positions as Bitcoin reached record highs above $124,000. The Accumulation Trend Score (ATS), a metric that assesses the strength of accumulation or distribution across different wallet sizes, has fallen to 0.26, remaining below the 0.5 threshold for several days. This score suggests a broad-based profit-taking activity across all segments of the market, from large holders with more than 10,000 BTC to small wallets holding less than 1 BTC.

The ATS evaluates accumulation strength by factoring in the size of the entities and the amount of Bitcoin acquired over the past 15 days. A score closer to 1 indicates accumulation, while a score closer to 0 indicates distribution. Exchanges, miners, and certain other entities are excluded from the calculation to ensure the data reflects genuine market activity. The current ATS reading is the lowest it has been in recent months, reinforcing the view that market participants are increasingly cautious or profit-driven in their behavior. This trend is particularly significant given the recent strong performance of Bitcoin, which recorded four consecutive green months from April through July.

The distribution phase is consistent with historical patterns observed following Bitcoin’s record highs. Typically, the cryptocurrency has seen corrections shortly after hitting all-time price peaks. This is supported by on-chain data showing that holders are redistributing their Bitcoin rather than accumulating at these levels. The ATS has further dropped to 0.20 in some analyses, suggesting a deepening trend of distribution among market participants. Analysts have noted that this phase often precedes a broader market correction, especially as August historically tends to see quieter trading activity and reduced volume. The last three Augusts have each seen corrections in the double-digit percentage range.

The recent price action has also reflected this bearish momentum. Bitcoin fell below the $115,000 level for the first time in nearly two weeks, retesting the $114,500 support before bouncing. Some market watchers have affirmed that BTC has entered a corrective phase, which could lead to further declines below key support levels. A drop below $112,000 could trigger a further decline to the $108,000 area, with on-chain data indicating a liquidity grab between these levels. A confirmed rebound could reset bullish momentum, but the overall trend suggests that the market is preparing for a deeper correction.

Historically, Bitcoin corrections have lasted between 1-3 weeks and have been relatively shallow compared to earlier cycles. Analysts suggest that a -15% to -25% pullback is a likely scenario, based on patterns observed in 2017 and 2021. These corrections are typically seen as part of a larger price discovery process, where the market recalibrates after a strong rally. The recent formation of an upside wick on the weekly chart at the $124,000 level has been interpreted as a signal of potential weakness, further supporting the view that a correction is underway.

Source: [1] All BTC Wallet Cohorts Now in Distribution Mode (https://www.coindesk.com/markets/2025/08/19/all-bitcoin-wallet-cohorts-now-in-distribution-mode-glassnode-data) [2] Bitcoin Risks Drop Below $110,000 Despite Bounce (https://www.mitrade.com/insights/news/live-news/article-3-1050560-20250819) [3] Bitcoin – Number of Addresses Holding 1k+ BTC (https://en.macromicro.me/collections/3785/crypto/29043/bitcoin-addresses-with-balance-more-than-or-equal-to-1k)