Bitcoin's recent rally has slowed, though analysts say the cryptocurrency remains in a bull market despite the pause. The leading cryptocurrency recently traded at $82,939, down nearly 4% over a seven-day period after surging to an eight-month high of $87,251 last week.
According to data analytics firm CryptoQuant, the rally triggered a bull market signal when Bitcoin crossed above its 365-day moving average, a technical indicator the firm describes as the "definitive technical signal" that has marked the start of Bitcoin's bull markets in past cycles.
However, profit-taking pressures are mounting. Short-term traders holding positions for one to three months are sitting on an average unrealized profit of approximately 33%, the highest level since December 2024. CryptoQuant noted that profit realization reached 25.7K BTC in a single day last week, marking the largest daily profit-taking event of 2026.
CryptoQuant identified three potential support levels where any near-term correction could stabilize: the 365-day moving average at roughly $80,000, the 200-day moving average at approximately $71,000, and the on-chain realized price at about $67,000. The firm said that as long as these levels hold, a pullback would represent healthy consolidation within a young bull market rather than a reversal of the uptrend.
Bitcoin reached a record high of $126,080 in October of last year before declining sharply following a major liquidation event that closed over $19 billion in bets. The decline continued into the first half of this year as the Federal Reserve signaled it was in no hurry to lower interest rates and investors redirected capital toward artificial intelligence stocks.
Recently, renewed interest in the debasement trade—where investors buy assets to hedge against currency depreciation—has supported Bitcoin's rise following U.S. total debt surpassing $40 trillion for the first time in July. Historically, Bitcoin and precious metals have performed well during periods of dollar weakness.
