Bitcoin Hits Third Profit-Taking Wave—What It Means for the Market

After surpassing $120,000 in July, on-chain data shows that whales have begun major profit-taking, marking what CryptoQuant calls the third significant profit-taking wave of this bull cycle.

This recent wave is driven largely by new whales who accumulated Bitcoin earlier in the cycle and are now securing gains. At the same time, early Bitcoin wallets from the Satoshi era have been observed moving coins after years of dormancy—these tend to have a strong psychological impact, even if their market size is small.

Despite short-term sell-offs, long-term sentiment remains bullish. Glassnode data shows Bitcoin's current price is above the cost basis of short-term holders, suggesting solid support levels if the market pulls back.

Coin Bureau, referencing analysis by Bernstein, claims the bull run is still in its early phase, as institutional capital continues to flow through ETFs and platforms like Coinbase and Robinhood.

CryptoQuant also notes a rise in new investor dominance, although not yet at extreme levels—indicating broader retail participation and a maturing cycle.

Analyst Willy Woo warns that Bitcoin may enter a cooling-off phase: “July marked the shift from trend momentum to price consolidation. Speculation and profit-taking are slowing momentum, possibly requiring a reset before the next breakout.”

Finally, Santiment’s on-chain metrics reveal that whales have accumulated about 0.9% of total BTC supply over the last four months, reinforcing the idea that long-term confidence remains solid despite temporary corrections.