Bitcoin Price Is Cooling Without Overheating: ATH Soon?

Bitcoin (BTC) price was hovering near its all-time high at the time of writing. However, the market hinted at a cooling effect rather than a selloff or extreme buying pressure.

The market entered a phase of quiet consolidation, not collapse, as investors held off on major moves.

While some profit-taking occurred, it did not disrupt the stability of BTC price. Meanwhile, this raised questions about what could trigger the next surge.

Cooling Effect Raises Calm, Not Concern

A recent market report showed Bitcoin’s price observing a cooling trend without entering an overheated state.

It is worth noting that this occurred despite BTC price trading near its all-time high.

Based on exchange trading volume, the trend revealed that activity was tapering rather than surging.

In a visual breakdown by volume, areas of increasing activity would typically be marked in red or dark colors to indicate overheating.

Instead, the dominant color suggested neutral or moderate cooling. This cooling does not point to a bearish turn. Rather, it signals stability.

Investors were not rushing to sell, and there was no aggressive new wave of buying either.

The market looked calm, and the foundation seemed firm. Yet, this is not often the case when prices reach historical peaks.

It is also important to note that, in previous bull runs, extreme emotions pushed prices sharply up or down.

Now, the absence of panic may suggest that participants are more measured. This is because they are waiting for broader economic signals to emerge.

Without new catalysts, such as central bank policy shifts, regulatory updates, or stronger inflows, Bitcoin could remain in this steady zone for some time.

However, history shows that such periods of calm often come before renewed momentum.

Bitcoin Price Realized Profit Signals Maturity

Recent data from Glassnode indicated that realized profit from Bitcoin passed $650 billion in this current cycle.

This total exceeded what was recorded between 2020 and 2022. Still, this third major wave of profit-taking appeared to be cooling off.

The slowdown in profit-taking activity showed reduced momentum, but it also reflected maturity in investor behavior.

Rather than reacting impulsively to price movements, holders stayed put even at high levels.

If anything, this decision to hold despite being in profit helps maintain market balance.

According to on-chain data, the current realized profit level mirrors that seen during mid-cycle phases of past bull markets.

Additionally, in those instances, after a period of consolidation, prices rose again. Notably, the behavior of long-term holders right now is key.

Their patience may be preventing a selloff. At the same time, it signaled that they expect more upside, possibly waiting for Bitcoin to move past its all-time high.

Next BTC Price Move Hinges on Sentiment Shift or Institutional Entry

The question now is whether the Bitcoin price will sell off or push higher. As of the time of writing, market data indicated that the BTC price was trading at $107,337.24.

With current demand stable but no longer rising sharply, the market sits in a fragile balance.

For now, retail sentiment appeared low. This was because many everyday investors seemed unsure or even negative. Historically, this kind of retail pessimism preceded sharp rallies.

Market participants believed that if institutional investors or new capital enter during this quiet period, it could change the tone quickly.

The calm may be a pause, not a peak. While Bitcoin was not rallying yet, conditions formed for a possible breakout, provided the right trigger appears.

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