Bitcoin News Today: Bitcoin's Profit-Taking Prolongs Downturn, Key Support Levels Could Halt Slide

Bitcoin's recent market turbulence has triggered a significant surge in profit-taking, with realized profits reaching $2.25 billion in the aftermath of a sharp price decline. This development, highlighted by on-chain analysts, underscores the bearish sentiment dominating the cryptocurrency market following a crash that saw Bitcoin dip to as low as $101,500 in late October. The data suggests that investors are actively liquidating positions, though the pace of selling appears to be moderating.

Technical and on-chain analyst Darkfost noted in an October 11 post that the 7-day moving average of the Net Realized Profit/Loss metric has climbed to its fourth-highest level in the current market cycle, with a weekly average consistently above $1.6 billion. This metric tracks the aggregate daily difference between profits and losses from Bitcoin transactions over seven days, indicating sustained pressure from profit-taking. Darkfost emphasized that such high levels of realized profits could prolong the bearish phase, delaying a potential market rebound.

The sell-off has been accompanied by a retesting of key support levels. Cryptocurrency analyst Ted Pillows identified the $99,000–$104,000 range as a critical support zone, noting that substantial spot bids within this bracket could stabilize the price if further declines occur. Conversely, Pillows highlighted that the $119,000 level and higher zones hold significant sell orders, which may act as resistance if the market recovers. As of October 12, Bitcoin traded at approximately $111,772, reflecting a 1% gain over the previous 24 hours.

The implications for investors remain complex. While high profit-taking typically exerts downward pressure, the presence of substantial support zones and the fact that many investors remain in profitable positions could mitigate severe declines. Analysts caution that the market's trajectory will hinge on whether profit-taking continues at its current pace or tapers off, allowing for a potential rebound.

On-chain data further illustrates the bearish structure. The Net Realized Profit/Loss metric's elevated levels suggest that investors are still extracting gains from recent purchases, a trend that may persist in the short term. However, the slowing rate of selling momentum offers a glimmer of optimism for a near-term stabilization.

For now, the focus remains on the $99,000–$104,000 support range and the $119,000 resistance level. If Bitcoin consolidates within these brackets, it could signal a transition from bearish to neutral market dynamics. Conversely, a break below $99,000 may trigger deeper corrections, while a sustained move above $119,000 could reignite bullish momentum.