Bitcoin’s price has surged past $100,000, marking seven straight weeks of gains. But fresh data now hints that this impressive rally could soon hit a pause.
While predicting exact market reversals is tricky, there are growing signs that investors—especially late entrants—should approach with caution.
Large Wallets Start Distributing
One of the clearest signals comes from wallet activity. According to on-chain data from Glassnode, large holders—those with over 10,000 BTC—have reduced their accumulation significantly.
In early May, these wallets showed a strong accumulation score of around 0.8. However, that number has now dropped below 0.5. This change, shown in color shifts from blue to orange, points to active distribution.
Even wallets with balances between 1 BTC and 10,000 BTC are slowing down their accumulation. Only small wallets holding less than 1 BTC continue to buy aggressively—driven largely by FOMO as Bitcoin hits new highs.
This trend suggests that profit-taking is underway, especially among early institutional and whale investors.
UTXO Data Flags Market Overheating
Another red flag is emerging from Unspent Transaction Outputs (UTXOs). These represent the leftover Bitcoin after a transaction and are useful for analyzing unrealized profits in the market.
CryptoQuant data shows that nearly 99% of all UTXOs are currently in profit—a classic signal of an overheated market. Historically, such high profitability often precedes a price correction.
Crypto analyst Darkfost explained:
“When this 99% profit signal starts dropping, it often triggers more selling as unrealized gains disappear. That’s when latecomers tend to sell at a loss.”
Yet, despite these cautionary signs, Bitcoin hasn’t shown any major correction. Prices are currently hovering around $108,000.
Long-Term Outlook Remains Bullish
Even with potential short-term pullbacks, many experts remain confident in Bitcoin’s long-term growth. A key driver behind this confidence is a wave of institutional adoption.
These long-term trends could offset any short-term corrections, reinforcing Bitcoin’s growing role as a global store of value.
Final Thoughts
While some indicators point to a temporary cooldown in the Bitcoin rally, the broader market sentiment remains optimistic. Large investors may be locking in profits, but institutions and smaller buyers are stepping in—further fueling the market’s momentum.
