Is Bitcoin Price Close to a Correction?

Bitcoin continues to post strong gains that some analysts describe as a rebound from a bear market, but the gains come with a marked escalation in profit-taking by investors and traders.

Daily realized profits rose to their highest levels since early December 2025, while unrealized profits approached historical ranges, which is typically associated with increased sales pressure and the start of a distribution phase.

According to a report published by “CryptoQuant”, Bitcoin prices have risen by approximately 37% since the beginning of April, supported by declining macroeconomic pressures, previously low valuations, and strong growth in demand for permanent derivatives contracts.

The momentum pushed the currency to its highest level in three months.

On the other hand, data shows investors took advantage of the rally to take profits.

On May 4, daily profits were around 14,600 BTC, which was the highest level since December 10, when the coin was trading above $90,000.

The Short-Term Holder Profit Index (STH SOPR) also rose above 1.016 and has remained above the break-even level since mid-April, reflecting the return of the majority of traders to the profit zone.

CryptoQuant analysts believe that price history shows that increased profit-taking at major resistance levels often precedes temporary peaks or periods of price consolidation, which currently leaves the market facing one of these two scenarios.

On a 30-day moving basis, investors realized a net profit of more than 20,000 Bitcoin for the first time since December 2025, after experiencing a period of severe losses in February and March, in which realized losses reached approximately 398,000 Bitcoin.

Analysts view this shift from losses to profits as a structural inflection point, reflecting the market regaining a significant portion of its profitability due to its recent gains.

Despite the improvement, current profit levels are still well below the range historically associated with a full-blown bull market, which is between 130,000 and 200,000 BTC in realized profits.

Investors are also currently holding the highest unrealized margins since June 2025, raising the possibility of a pullback as incentives to stabilize earnings increase.

Meanwhile, demand for perpetual contracts continues to expand, reinforcing the speculative nature that underpinned April’s rally, while spot demand is still contracting, albeit at a slower pace compared to early 2026.

With limited inflows into trading platforms, the market appears to be facing the possibility of a pullback, but has not yet reached the stage of widespread distribution, which typically signals the end of a bull market cycle.

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