Bitcoin may face further correction as long-term holder profit-taking hits levels seen in previous market cycle tops. With 3.4 million BTC in profit realized, a slowdown in ETF inflows is evident after the Fed rate cut. Price dropped below $112,000, hitting a four-week low of $108,700 on Coinbase. Analysts suggest a potential drop to $107,500.

Glassnode indicates a cooling phase for Bitcoin as profit-taking surpasses 90% of coins moved three times this cycle. Historical data suggests major cycle tops following such peaks. Continued realized profits coincide with cycle peaks, hinting at a potential cooling phase ahead.

The Spent Output Profit Ratio (SOPR) shows concerning behavior as some Bitcoin holders sell at a loss, signifying market stress. SOPR dips below 1 can indicate exhaustion in bull markets, while rejections at 1 or above signal downside pressure in bear markets. The ratio is currently at 1.01, according to Glassnode.

Glassnode analysts warn of deeper cooling for Bitcoin unless demand aligns with institutions and holders. A risk of further correction looms, with a macro structure indicating exhaustion. Despite this, Michael Saylor remains optimistic, predicting a Q4 surge after macro headwinds subside. Bitcoin was trading at $109,645, down 6.5% over the past week.

Read more at Cointelegraph: Bitcoin Hits Four-Week Low Amid Major Profit-Taking