Bitcoin’s explosive rally cooled off this week as long-term investors locked in profits. Market structure now shows signs of vulnerability due to a thin trading zone.
Bitcoin pulled back from its Monday high of $123,000, falling below $117,000 in a 5% intraday correction. The drop came as investors took profits following a rapid weekend surge, marking one of the year’s largest realized gain events in the crypto market.
Blockchain analytics firm Glassnode reports that holders collectively secured $3.5 billion in profits over a 24-hour span. Notably, long-term holders—wallets that acquired BTC over 155 days ago—were responsible for 56% of the realized gains.
The latest price rally, which saw BTC rise from $108,000 to $123,000 in a short time, created a noticeable liquidity void. Glassnode’s UTXO Realized Price Distribution (URPD) shows a lack of trading volume between the $110,000 and $116,000 levels, suggesting minimal buyer engagement in that price band.
URPD data maps where BTC is currently being held based on the price it last moved. Adjusted for entity activity, the chart filters out internal transfers and exchange balances to focus on genuine market participation. The chart reveals a dip in unspent transaction outputs (UTXOs) in the $110K–$116K range, leaving the market exposed to high volatility both upward and downward.
Analysts caution that this supply gap increases the risk of abrupt moves, as there’s limited support or resistance in the mid-$110,000 zone. As BTC consolidates, traders are closely watching to see whether momentum continues or further profit-taking pushes prices lower.
CryptoFeedHub Note: This article is a rewritten summary based on external reporting. Original source: coindesk.com.