Bitcoin News Today: Bitcoin consolidation signaled by profit-taking and slowing liquidity

Bitcoin is currently navigating a consolidation phase, driven by increased profit-taking and a slowdown in liquidity, according to recent analysis from Cryptoquant [1]. The on-chain data suggests that the market is entering a “bullish cooldown” period following Bitcoin’s record high of $123,000. This phase is marked by a dip in the Bull Score Index from 80 to 60, which still remains within bullish territory but indicates a decline in momentum [1].

Key indicators point to a cautious market environment. Stablecoin liquidity growth — a critical metric for gauging fresh capital inflows — has slowed, with tether (USDT) expansion decelerating to just $9.6 billion over the past 60 days [1]. Additionally, network activity has declined, and BTC inflows to major exchanges like Coinbase have eased, signaling a reduction in short-term trading demand [1]. These trends are reinforced by the fact that the on-chain profit margin signal has turned red, indicating that many participants have already secured significant gains and are holding fewer unrealized profits [1].

While the immediate outlook is cautiously neutral, the broader market cycle remains bullish. Long-term holders continue to show accumulation tendencies, with Bitcoin consolidating between $114,000 and $120,000 over the past four months [3]. This suggests that institutional investors and whales are still confident in Bitcoin’s long-term potential, even as retail traders take profits. Glassnode also reported that 70% of Bitcoin’s short-term holders remain in profit despite the recent pullback, which is a sign of healthy market balance and potential for future price movement [4].

The valuation metrics are now hovering near a crucial bull-bear tipping point. The Bull-Bear Cycle Market Indicator, P&L Index, and MVRV Z-score are all in close proximity to levels where a further price drop could push Bitcoin into bearish territory. Should this occur, the Bull Score Index could potentially fall below 40 for the first time since April 2023 [1]. This highlights the delicate balance between accumulation and correction.

Bitcoin futures markets reflect a similar shift in sentiment. Open interest net positions have turned neutral, signaling that leveraged traders are reducing exposure ahead of a potential breakout [4]. This suggests a market in transition rather than one in reversal.

Cryptoquant analysts note that the current phase is characterized by a lack of strong liquidity on both the buy and sell sides, which is typical of a market in consolidation. Traders are essentially waiting for a catalyst to break the range, which could come in the form of macroeconomic news, regulatory developments, or renewed buying interest [1].

Overall, the data does not support a bearish reversal but rather a necessary pause in the bullish trend. The underlying on-chain fundamentals suggest that Bitcoin is preparing for a potential resumption of its upward trajectory once liquidity and market sentiment realign. The immediate price action may remain sideways, but the long-term narrative remains intact [1].

Source:

[1] https://api.news.bitcoin.com/wp-json/bcn/v1/post?slug=profit-taking-and-sluggish-liquidity-point-to-bitcoin-consolidation-cryptoquant

[2] https://cryptorank.io/news/tag/bitcoin

[3] https://www.coinex.com/en/insight

[4] https://m.fastbull.com/news-detail/bitcoin-futures-bias-turns-neutral-as-oi-net-news_6100_0_2025_3_6967_3/6100_DOGE-USDT