CryptoQuant: Short-term on-chain profit margins hit the highest since December 2024, Bitcoin may face a correction

According to a report by The Block, CryptoQuant's research director Julio Moreno pointed out that Bitcoin's closing price last week was above the 365-day moving average, confirming the start of a new bull market. However, Moreno stated that after Bitcoin reached an eight-month high of $87,400, several indicators show that upward momentum is weakening, and a market correction may follow.

The report noted that the on-chain unrealized profit margin for short-term traders has risen to 33%, the highest level since December 2024. Historically, when profit margins are at similar levels, it often prompts traders to take profits. Data shows that on September 22, Bitcoin holders realized profits of 25,700 BTC in a single day, setting a record for the highest daily profit since 2026; the altcoin market also showed signs of selling pressure. The seven-day cumulative number of altcoin transactions rose to 76,000, the highest level since October 17, 2025. Meanwhile, spot demand continues to shrink, and the growth of futures demand has significantly slowed.

After Bitcoin previously reached an eight-month high of around $87,400, the upward momentum has shown signs of fatigue. Julio Moreno indicated that if a correction occurs, the 365-day moving average (around $80,000) will serve as the primary support, followed by the 200-day moving average (around $71,000) and the on-chain realized price for traders (around $67,000). Provided that the support levels hold, this correction is more likely to be a healthy consolidation in a young bull market rather than a trend reversal.