Bitcoin has retraced to the $71,000 level, with on-chain data revealing a significant spike in profit-taking behavior among investors that is capping upward momentum. According to analytics firm Glassnode, the 24-hour simple moving average (SMA) of Bitcoin Realized Profit witnessed notable spikes as BTC recovered from recent lows and broke back above $73,000. During these spikes, profit-taking exceeded $20 million per hour, contributing to the asset's pullback below $71,000.
"Every approach to the $70k–$80k band faces thin liquidity and profit-taking pressure, capping the bounce," noted Glassnode. The pattern indicates that fresh liquidity capable of absorbing this selling pressure remains absent from the market, preventing sustained breakouts.
Simultaneously, the continued sideways movement has left a substantial portion of the Bitcoin userbase underwater. Glassnode data shows that the Bitcoin Number of Addresses in Loss metric remains elevated, with approximately 13.5 million addresses currently holding coins at a net unrealized loss. This suggests a meaningful portion of the network acquired coins above the current spot price. If the current pullback continues, this metric could return to highs above 16 million seen earlier in the year.
The $70,000–$80,000 zone has become a critical area of contention, characterized by thin liquidity and a steady flow of sell orders from investors locking in gains. This creates an imbalance where breakout attempts are repeatedly rejected. As of the latest data, Bitcoin is trading around $70,800, signaling a phase of consolidation rather than expansion. For a sustained breakout, stronger demand and deeper liquidity will be necessary; otherwise, BTC may continue to trade within this range or revisit lower support levels.
