Bitcoin's Uptrend Loses Momentum as Profit-Taking Intensifies

Generated by AI AgentCoin World
Tuesday, Jul 1, 2025 12:02 am ET1min read
BTC
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Bitfinex analysts have suggested that

Bitcoin
may have reached a local high, with some traders beginning to take profits. This assessment comes as Bitcoin's spot volume has been declining, which analysts interpret as a potential indicator of a local top. The analysts noted that recent aggressive selling resembles past capitulation events, which often mark local bottoms, suggesting a potential recovery if Bitcoin can hold key support levels.

The analysts highlighted that if Bitcoin can maintain the $102,000-$103,000 support zone, it could signal that a local bottom has formed and the market is stabilizing. This observation is crucial for traders who are closely monitoring the market for signs of a reversal or continuation of the current trend. The analysts' insights provide a cautious outlook, suggesting that while there may be short-term volatility, the overall market sentiment could improve if key support levels hold.

The analysts' observations are based on technical analysis and market behavior, focusing on the declining spot volume and recent selling patterns. They emphasize the importance of monitoring key support levels and the potential for a market recovery if these levels are maintained. This analysis is part of a broader effort to understand the current state of the Bitcoin market and provide insights for traders and investors.

According to the analyst, Bitcoin's nearly three-month uptrend may be losing momentum as buying pressure weakens and more traders begin to take profits. In this recent upward trend, the momentum of the uptrend has started to weaken for the first time. However, the analyst also warned that based on order flow and on-chain metrics, Bitcoin may be entering a consolidation phase or approaching a local peak, rather than continuing to show "vertical acceleration." Spot trading volume has declined, active buy pressure has weakened, and profit-taking behavior has intensified — especially among short-term holders who have been holding since below $80,000.