Bitcoin witnessed a surge in profit-taking activity as investors locked in more than $3.7 billion in gains in a single day.
CryptoQuant analyst Caueconomy highlighted this development in his latest update. He noted that the event ranks as the fifth-largest profit-taking spike of 2025, triggered by BTC’s recent strong rally. Notably, Bitcoin approached the $120,000 mark earlier today for the first time since August.
Historic Profit-Taking Amid Price Rebound
Specifically, it touched $119,780 before retracing slightly below that level. Meanwhile, just four days ago, Bitcoin traded below $110,000. The abrupt turnaround is now causing traders to book nearly $4 billion in profits in one day, which has, to some extent, slowed BTC’s price climb.
While such high volumes of realized profit often add selling pressure to the spot market, Caueconomy noted that the data does not yet indicate short-term holders dominating this activity.
Instead, both speculative and longer-term investors have participated, leaving the market balanced for now. He added that profit-taking volumes could expand further if Bitcoin continues to test resistance levels. At press time, Bitcoin is holding at $118,884, boasting a seven-day gain of 6.5%.
Bitcoin Short-Term Holders Show Signs of Stress
Separately, analyst Kripto Mevsimi highlighted shifts in STH-SOPR (Spent Output Profit Ratio for short-term holders), a key metric for tracking speculative market health.
During September, STH-SOPR dropped to 0.992, reflecting that short-term holders were increasingly selling BTC at a loss. However, by month’s end, the metric rebounded slightly to 0.995. While still negative, it signals the first signs of stabilization.
Mevsimi’s analysis pointed to the $114K–115K range as a heavy resistance zone, but bulls have successfully flipped this barrier and are now challenging the $120K price level.
Price Remains Bullish with No Excessive Leverage
Meanwhile, in a separate analysis, CryptoQuant’s PelinayPA remarked that Bitcoin trading is strongly within a range that shows signs of a rally driven by genuine spot demand rather than speculative leverage.
She noted that, unlike typical rallies fueled by high positive funding rates and leveraged longs, the current neutral to negative funding rates amid rising prices suggest a healthier market supported by long-term holders.
Negative funding also hints at a short bias, which could lead to sharp upward squeezes and accumulation opportunities.
PelinayPA noted that a sustained drop below $115K with negative funding may trigger a correction toward $105K–$110K.
Overall, the funding rates and strong spot demand point to a bullish, sustainable Bitcoin price rally with a potential move to $125,000 soon — the level of Bitcoin’s all-time high.
Bitcoin Funding Rates on Binance Indicate a Potential Rally
“Overall, the setup remains bullish, negative funding suggests accumulation opportunities while strong spot demand underpins the rally’s sustainability.” – By @PelinayPA
Link ⤵️https://t.co/mJmLZJMVhX pic.twitter.com/OHXi1eJUGk
— CryptoQuant.com (@cryptoquant_com) October 2, 2025
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