Bitcoin News Today: Bitcoin Enters Third Profit-Taking Wave Amid Consolidation and Low Volatility

Bitcoin is showing signs of entering a well-documented on-chain pattern as a third profit-taking wave begins, according to analysis from on-chain data firm CryptoQuant [1]. This development mirrors historical bull cycles, including the one seen in 2020, suggesting the market is operating within an expected framework of investor behavior [1]. The wave is typically seen after a period of consolidation and reflects investors locking in gains following a sustained price rise [1].

The current phase of Bitcoin’s cycle is described as neutral, with no dominant bullish or bearish trend emerging yet [1]. This stage, often referred to as the “boring” period in trader circles, is marked by low volatility and reduced speculative activity [1]. However, the patterns seen in past cycles suggest that this calm could be followed by a more dynamic and potentially explosive price move [1].

Historically, the end of bull cycles has been marked by sharp price surges that follow a series of profit-taking waves [1]. If the current trajectory follows that pattern, it may indicate that Bitcoin is approaching a similar breakout. Analysts caution that while the pattern is familiar, the exact timing and scale of the potential surge remain unpredictable [1].

At the time of reporting, Bitcoin’s price hovered around $98,500 on Bitstamp, reflecting a mixed investor sentiment following recent developments [1]. The market remains in a wait-and-see mode despite a brief upward movement in price [1]. Meanwhile, new whale activity—often associated with large institutional investors—is playing a key role in driving the third profit-taking wave, according to CipherBuzz [1].

The broader crypto market continues to grapple with uncertainty, including potential regulatory shifts and the absence of detailed Bitcoin reserve data in recent U.S. White House reports [1]. These developments add complexity to the current market environment, especially as investors monitor for clarity on policy and institutional adoption [1].

CryptoQuant’s analysis is grounded in on-chain metrics and does not project speculative price forecasts [1]. While the firm notes structural consistency with past cycles, it has not provided a specific price target or timeline for the next phase [1]. This approach focuses on understanding Bitcoin’s behavior through observable data, avoiding overinterpretation while offering a clear framework for market participants [1].

Source: [1] Cryptoquant: Third Profit-Taking Wave Mirrors Past Cycles... (https://news.bitcoin.com/cryptoquant-third-profit-taking-wave-mirrors-past-cycles-hints-at-future-breakout/)