Bitcoin has entered a ‘bullish cooldown’ phase, as reported by CryptoQuant, with on-chain data indicating a slowdown in price momentum and profit-taking from long-term holders.
This cooling phase suggests a potential consolidation rather than a market crash, with market analysts monitoring macro catalysts like Fed rate cuts that could influence future trends.
Bitcoin is in a bullish cooldown as reported by CryptoQuant. Recent on-chain data indicates a slowdown in the price surge seen earlier, pointing to a phase driven by profit realization from long-term holders as the current cycle matures.
Ki Young Ju, CEO of CryptoQuant, explains that this phase includes profit-taking and a reduction in risk appetite. Axel Adler Jr., a key analyst at CryptoQuant, describes the cycle as a chance for some short-term corrections, while avoiding a bearish reversal.
Institutional Investors Under Scrutiny Amid Price Pause
Bitcoin’s current phase isn’t signaling immediate harsh setbacks but a breathing period. Institutional investors and ETFs are under scrutiny for potential influence on market direction as macro factors, like interest rates, remain focal catalysts.
Long-term holders offloading at highs indicate cycle peaks. Short-term holder profits dwindle, risking losses on corrections. These dynamics put the Bull Score Index above 50, hinting at stable yet volatile developments. The focus remains on institutional flows.
Historical Data Predicts Continued Cycle Maturity
Previous corrections in March–October 2024 mirrored today’s market. Analysts identify this as less intense due to moderated profit-taking pressure. Historical trends suggest a healthy consolidation phase rather than steep declines, as seen in 2024.
Experts suggest examining on-chain data from past transitions for market insight. Axel Adler Jr. highlights that slowed whale accumulation implies potential consolidation. This aligns with data-driven forecasts predicting continued cycle maturity.
“We’re seeing a lower high forming, which often indicates a market cooling phase. Long-term holders are beginning to take profits, which puts pressure on prices.”
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