Bitcoin’s powerful climb toward new highs is showing cracks, with profit-taking pressure starting to weigh on the market. On-chain metrics suggest the cryptocurrency could be entering a choppy phase, leaving traders watching both technical levels and upcoming macro events.
Momentum Slows Near Record Levels
BTC is currently trading around $115,269 (PKR 32.7 million), slipping just below its all-time high of roughly $124,000 (PKR 35.1 million) set earlier this week. Analysts point to the MVRV ratio, now up 21%, as evidence that many holders are sitting on sizable gains—historically a sign that selling may increase.
Fed’s Next Move Could Set the Tone
Market watchers say Bitcoin’s next big catalyst may come from outside crypto. Attention is shifting to the Federal Reserve’s September 17 meeting, where futures markets are pricing in an 84% chance of a rate cut. If confirmed, that could provide the spark for another leg higher. Until then, analysts expect sideways trading and short-term volatility.
Profit-Taking Meets Institutional Demand
Recent dips have been driven by short-term traders locking in profits, particularly in thin weekend trading sessions that triggered liquidations in low-liquidity zones. Yet larger players are stepping in. According to Bitwise Europe, institutional accumulation remains strong, cushioning the downside even as retail traders exit positions.
Technical Picture: Caution With a Bullish Underpinning
Bitcoin has slipped around 2% from its recent highs, but key support between $115K and $117K continues to hold. A decisive drop below $115K could open the door to deeper losses toward the $110K region. On the other hand, a sustained rally above $120K would likely re-establish bullish momentum, particularly if macro conditions align.
Meanwhile, data shows $2.2 billion in short positions could face liquidation if BTC reclaims its peak—a setup that could amplify volatility in either direction. Importantly, wallets holding 10 or more BTC are still growing, a signal that longer-term, deep-pocketed investors are holding firm.
Crossroads for Bitcoin
The market now faces a familiar tension: profit-taking from recent highs versus steady institutional buying. With liquidity thin and leverage high, price swings are likely to remain sharp. But the decisive factor may lie outside crypto—whether the Fed delivers the rate cut traders are expecting.
Until then, Bitcoin sits at a crossroads: either consolidating before another breakout, or setting up for a sharper correction.
