Crypto markets are seeing a sharp pullback in recent weeks, but onchain data indicates potential buying opportunities amid elevated profit-taking.
What Happened: Glassnode data shows the dip is driven largely by long-term investors taking profits. While sentiment appears negative, the conditions could present a favorable entry point for patient traders.
Bitcoin
BTC/USD
Has seen more than $1.5 billion in profits realized since July 18, marking the largest profit-taking since December 2024.
Trader Ted Pillows noted that despite minor 2–3% dips causing panic, true tops involve mass selling to go all-in on crypto—something not currently observed, suggesting further upside potential.
Ethereum
ETH/USD
+3.00%
$575 million have been realized since Aug. 16, the largest in this cycle, showing longer-term ETH holders taking profits.
Solana
SOL/USD
+6.00%
: more than $105 million realized since Aug. 17.
XRP
XRP/USD
-2.00%
: on July 24, $375 million was realized, reflecting strong distribution similar to December 2024.
TRON
TRX/USD
-5.00%
: $230 million realized on Aug. 6, setting a record for TRX and highlighting broader altcoin sell pressure.
Why It Matters: Santiment data shows retail sentiment has shifted sharply bearish, as Bitcoin dips below $113,000 the most negative since June 22, when geopolitical tensions presented a window of weakness.
Historically, extreme fear among traders has signaled potential buying opportunities, as markets often move opposite to crowd expectations.
The recent profit-taking may thus indicate a dip-and-bounce setup in the making.
