Bitcoin's Uptrend Is Losing Momentum as On-Chain Indicators Signal Fatigue: CryptoQuant

Bitcoin's ongoing uptrend is beginning to lose steam, according to on-chain analytics platform CryptoQuant, which said the bull market remains intact but flagged the possibility of a short-term correction as momentum fades.

In a recent report, CryptoQuant noted that Bitcoin's ($BTC) close above its 365-day moving average last week offered significant technical confirmation that a new bull market has begun. The firm's Bitcoin Bull Score Index, meanwhile, stands at 90 out of 100, pointing to an extremely strong bullish backdrop. Composite readings of this kind condense multiple on-chain metrics into a single gauge of the cycle's health — which is precisely why the fatigue signals piling up beneath them are drawing attention.

Still, after Bitcoin printed an eight-month high of $87,400, a series of on-chain indicators have signaled that bullish momentum is weakening.

Traders' on-chain unrealized profit margin has climbed to 33%, according to CryptoQuant data — the highest level since December 2024. Analysts caution that large unrealized gains across investor positions could generate selling pressure, noting that similar readings in the past have coincided with elevated profit-taking.

Some of that profit-taking already appears to be underway. Bitcoin investors realized a combined 25,700 $BTC in profits on September 22, marking the largest single-day profit-taking recorded so far in 2026. CryptoQuant said the data suggests market participants have begun using the price increase to lock in gains.

The report also flagged a notable signal in the altcoin market. Activity involving altcoin transfers to exchanges surged over seven days to 76,000 transactions from 51,000 distinct investors — the highest levels observed since October 17, 2025, just 11 days after Bitcoin reached its previous all-time high. CryptoQuant emphasized that sharp increases in exchange deposit activity often indicate that investors are preparing to sell or distribute their holdings.

Demand-side metrics are also softening. Visible demand in the spot market has contracted by 170,000 $BTC over the past 30 days, while growth in speculative demand in the futures market has slowed markedly. Futures demand stood at 164,000 $BTC on September 14 but has since fallen to just 16,000 $BTC, according to the latest data. Spot and futures demand are the gauges analysts use to track how much fresh capital is entering the market, making their simultaneous cooling a central piece of the fatigue picture.

CryptoQuant also outlined key support levels to monitor should a correction materialize. The first significant support sits at the 365-day moving average, near $80,000. Below that, the firm pointed to the 200-day moving average at $71,000 and an on-chain price level watched by traders at around $67,000 — reference points that map out how deep any pullback could run, starting with the very average whose reclaim confirmed the new bull market. Whether spot and futures demand stabilize, and how the market behaves around these levels, are the markers on-chain watchers will be tracking from here.

Source: Bitcoin Sistemi

*This is not investment advice.