Bitcoin rally under pressure as profit‑taking risk spikes, CryptoQuant warns

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Is the Bitcoin Surge About to Stall? On‑Chain Data Raises Alarm

Bitcoin’s latest rally is showing signs of strain, according to CryptoQuant’s newest on‑chain metrics. A sharp rise in inflows to custodial wallets—up 12 % over the past week—combined with an 8 % drop in the Net Unrealized Profit metric suggests that traders are increasingly locking in gains, foreshadowing potential short‑term sell‑offs.

Key Takeaways

Custodial wallet inflows up 12 %: Historically a precursor to near‑term profit‑taking and price corrections.
Net Unrealized Profit down 8 %: Indicates that a sizable portion of recent gains are being realized by market participants.
Volume trends: Elevated trading volume reinforces the likelihood of heightened market activity and possible price volatility.
Profit‑taking pressure: The convergence of these metrics signals that the bullish momentum may face resistance in the coming days.
Strategic implication: Investors should monitor on‑chain indicators closely as they often precede price pullbacks.