Bitcoin’s recent correction is a consolidation, not a breakdown: 91% of BTC supply remains in profit, signaling holder resilience, while short-term risks persist from taker sell pressure, a 12.54% NVT Golden Cross decline, and liquidation clusters near $111K.
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91% of Bitcoin supply in profit
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Spot taker CVD shows dominant sell-side activity over the past 90 days
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NVT Golden Cross down 12.54% with liquidation clusters concentrated near $111K
Meta description: Bitcoin correction shows 91% of supply in profit; BTC consolidation at $111K pivot. Read on for on-chain signals, risks, and trade considerations.
What is Bitcoin’s current outlook after the recent correction?
Bitcoin’s correction is best read as consolidation within a broader uptrend. Short-term sell-side dominance and a weakened NVT Golden Cross raise caution, but 91% of supply in profit and shallow realized losses indicate strong holder conviction and a reduced likelihood of a deep structural bear phase.
How does Spot Taker CVD reflect market sentiment?
Spot Taker CVD, measuring cumulative market order imbalances, shows taker sell volume surpassing buys over the past 90 days. This indicates profit-taking by short-term participants after rallies toward the $110K area. While selling pressure could keep price action muted, the effect is smaller than historical capitulation phases.
Why does the NVT Golden Cross decline matter?
The NVT Golden Cross, which compares transaction value to market capitalization, has fallen by 12.54% at press time. Historically, sustained drops in NVT can signal reduced transaction demand relative to valuation and often align with local tops or consolidation phases.
In this instance, the decline is moderate versus prior bearish cycles, suggesting demand softness but not a structural failure. If on-chain activity rebounds, the NVT could stabilize and restore upward momentum.
Where are liquidation risks concentrated and what do they imply?
Binance liquidation heatmaps reveal heavy clusters of long positions just below $111K. A move into this zone could cascade long liquidations and amplify downside volatility. Conversely, a surge above current levels would likely trigger short squeezes from clustered short exposure.
As a result, $111K functions as a near-term inflection point: it can either accelerate a pullback if breached downward or accelerate an upside move if buyers force a squeeze.
Source: CryptoQuant
Source: CryptoQuant
How should traders interpret these mixed on-chain signals?
Traders should treat the current setup as a balanced risk environment. Strong realized profits among holders provide downside support, but taker sell dominance and NVT weakness increase the likelihood of choppy action.
Risk management is essential: use clear stop rules around $111K and position sizing that accounts for potential volatility from liquidation cascades or sudden squeezes.
Source: CoinGlass
Frequently Asked Questions
Will Bitcoin’s 91% of supply in profit prevent a larger crash?
High realized-profit concentration reduces the likelihood of mass capitulation since fewer holders are underwater. It does not eliminate short-term volatility driven by leverage and liquidity pockets around $111K.
What is the significance of taker CVD in price direction?
Spot taker CVD reveals whether market orders are net buy or sell. Persistent taker selling suggests short-term distribution, which can pressure prices until demand reasserts itself.
How can traders manage risk around the $111K pivot?
Use tight position sizing, set stop-loss levels outside major liquidation clusters, and consider hedging with options or inverse positions to mitigate sudden squeezes.
Key Takeaways
- Holder resilience: 91% of BTC supply in profit points to shallow realized losses and a strong base.
- Short-term risks: Taker sell dominance and a 12.54% drop in the NVT Golden Cross signal caution for upward momentum.
- $111K pivot: Concentrated liquidation clusters make this the critical near-term level—breach direction likely to define the next major move.
Conclusion
Bitcoin’s correction reads as consolidation rather than structural breakdown. On-chain data—high supply-in-profit, taker CVD, NVT shifts and liquidation heatmaps—tells a balanced story: resilience at scale but elevated short-term directional risk around $111K. Monitor liquidity and on-chain demand to gauge whether consolidation resolves into a breakout or deeper correction.
Published: 2025-09-03 | Updated: 2025-09-03
Author: COINOTAG (newsroom)
Sources: CryptoQuant, CoinGlass
