Bitcoin Profit-Taking Stays Robust – Data Indicates No Evidence of Overextension

Bitcoin is ending the week on a strong note, trading above $105,000 following a rapid rally that brought its price to a new historic high close to $112,000. This surge has reignited optimistic sentiments throughout the market, leading traders and analysts to speculate on the potential next chapter of this cycle.

Although the market has surged, on-chain statistics indicate a stable environment. Leading analyst Darkfost pointed out that net realized profits remain within typical boundaries for a bull market. His observations demonstrate that profit-taking does not equate to market weakness; in fact, it plays a vital role in maintaining market structure as trends advance. “This is what keeps investors engaged and staves off parabolic exhaustion,” he remarked.

The recent trends suggest that a transformation in market dynamics is underway, as Bitcoin moves past its consolidation period following the latest halving event. With strong weekly support above $105K and realized profit levels remaining healthy, bulls are targeting even higher prices. If the current momentum persists, the rejection around $112K may just be a temporary setback. As always, market fluctuations are expected, but this week’s close sends a clear indication: the bullish trend remains intact.

Bitcoin Positioned for Major Weekly Close

Bitcoin is on track to achieve its highest weekly close ever, highlighting its upward momentum as it gears up for what many anticipate could be the next significant bullish phase. Following its spike to a new all-time high close to $112,000 earlier this week, BTC has stabilized above the $105,000 mark, firmly placing itself above crucial short-term support heading into the next week.

However, although the price trends suggest a bullish outlook, broader macroeconomic factors still present risks. Elevated interest rates, tightening financial conditions, and overall market uncertainty are key considerations. Investors remain cautiously hopeful, but volatility can swiftly return if global risk sentiments shift negatively.

On-chain metrics provide a more realistic perspective on the current market cycle. According to Darkfost, the data shows that realized profits presently total 104,000 BTC, approximately $11 billion. While this figure is substantial, it remains well below the historical threshold of 350,000 BTC, which usually indicates excessive enthusiasm or market overheating.

This suggests the market is in a healthy zone for profit-taking. “Taking profits isn’t problematic during a bull market,” noted Darkfost. “It’s essential, as it helps sustain momentum and keeps market participants engaged.”

The upcoming week is crucial. A confirmed weekly close above $105K could firmly establish this level as new support, paving the way for additional gains. Conversely, if bulls fail to maintain their position, the rally could falter. At present, Bitcoin appears robust, but the market is approaching a critical juncture that will test existing convictions.

BTC Maintains Key Support After Hitting New ATH

Bitcoin is trading around $107,750 after a period of volatility that saw prices reach a new all-time high close to $112,000. The daily chart reflects BTC’s retreat from overbought conditions while maintaining a strong hold above the 34-day EMA at $100,886—a level that has consistently provided dynamic support throughout this uptrend.

The price remains well above the 50, 100, and 200-day SMAs, reinforcing the bullish structure. The crucial horizontal support at $103,600—now reclaimed—represents another significant level. Originally a resistance barrier during the March-April range, it now serves as a potential launching point if BTC can solidify above it.

Volume appears to be slightly decreasing during this pullback, potentially indicating a healthy correction rather than a full reversal. As long as Bitcoin holds above the $103,600–$105,000 range, bulls will maintain control. A more severe correction would likely find initial support around the 34 EMA and then the 100 SMA at approximately $91,000.

Currently, the bullish trend persists. However, the rejection at $112K paired with waning momentum requires some caution. A weekly close above $105K would validate strength, while a drop below $103K could indicate short-term weakness.