Bitcoin stabilized on Friday around $109,000 after bouncing from a low of $103,500, representing approximately an 18% correction from the all-time high of $126,200 reached on October 6. According to Checkonchain, this is a typical phenomenon in an uptrend, where the price usually retraces about 20%. This pattern has repeated since the beginning of the cycle in 2023 and indicates a natural cooldown after a significant rise.

Bitcoin under selling pressure

The main source of selling pressure comes from existing Bitcoin holders. As noted: A huge amount of selling pressure from long-term investors has emerged. This group forms a barrier to growth. The amount of coins that returned to circulation after a long period of inactivity reached $2.9 billion per day, the second-highest level of this cycle.

An interesting trend is that up to 47% of selling pressure comes from coins held for 6 months to one year. This indicates that investors who bought at the end of 2024 or during the April dip to around $76,000 are currently taking profits.

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Profit taking drives the correction

Further analysis shows that the average age of sold coins has increased significantly. At the start of the cycle in 2023, the average was only 26 days, while today it reaches approximately 100 days. This means that more and more older coins are returning to the market, and holders are realizing their gains after a longer period.

At the same time, realized profits have also increased, currently reaching $1.7 billion per day, one of the highest levels of this cycle. On the other hand, realized losses reached $430 million per day, indicating a certain level of capitulation among less patient investors.

These data clearly indicate that profit taking is the dominant market behavior. Although this selling pressure is currently weakening Bitcoin’s price, it is a natural part of the market, which clears itself and prepares for the next growth phase.