Bitcoin reached a record $123K before a rise in exchange inflows showed many short-term holders securing profits.
Long-term Bitcoin holders continue to maintain their positions, signaling confidence in the ongoing bullish market structure.
Institutional wallets show no large outflows, and ETF inflows remain strong, confirming sustained interest in Bitcoin despite short-term cooling.
Bitcoin recently touched a new all-time high of $123,000. However, on-chain activity is now pointing to a potential short-term price correction as traders take profits.
Spike in Exchange Inflows Indicates Profit-Taking
According to a report by analyst Tarekonchain on CryptoQuant, there has been a clear spike in Bitcoin inflows to centralized exchanges. This shift indicates that short-term holders and some whales are likely securing gains after the latest rally.
The trend aligns with historical post-rally behavior. Following sharp upward movements, investors tend to move funds onto exchanges to lock in profits. These actions often signal a temporary local top. The market typically enters a phase of correction or sideways consolidation afterward as new support levels are tested.
Although the exchange netflow data shows increased inflows, the overall long-term trend remains stable. The recent profit-taking appears tactical rather than structural.
Long-Term Holders and Institutions Remain Unmoved
Despite the near-term cooling, the broader sentiment in the Bitcoin market stays constructive. CryptoQuant’s analysis confirms that long-term holders have not initiated any large-scale sell-offs. Their wallets remain relatively dormant, showing continued confidence in the asset.
Additionally, no meaningful outflows have been recorded from major institutional wallets. These large entities often reflect the broader investment horizon. Their steady position signals underlying bullish conviction and reduces the chances of a broader market sell-off.
ETF-related demand also continues to provide positive support. The consistent inflows into Bitcoin ETFs suggest ongoing interest from traditional finance, which helps balance out the current round of retail profit-taking.
Local Correction Expected, Momentum Still Positive
The current market behavior is not uncommon following strong rallies. As shared by cryptoquant_com on X, this movement "typically suggests a local top and could lead to a healthy correction or consolidation."
https://twitter.com/cryptoquant_com/status/1944774118802432424
While short-term traders are cashing out, there is no indication of panic or long-term reversal. The macro landscape and on-chain indicators continue to support the ongoing bull cycle. For now, the market is expected to stabilize before its next major move.
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