Bitcoin merges below the highest ever as it earns profits.

Bitcoin (BTC) has gone through a healthy integration phase after a record high of $111,880 last week, but is still facing a threat from a move that will earn big profits.

According to a Bitfinex Alpha report on May 26, President Donald Trump increased BTC (ETF) by more than 40%, more than 40%, before BTC was increased by more than 40%, and more than 40%, before President Donald Trump came along with tariff threats on European Union imports, causing risk-off movements across global markets.

Macro shocks and increased permanent futures leverage have led to cascade liquidation, bringing the price below the $107,000 threshold within 36 hours.

However, this was a much-needed cooling movement. Futures funding reversed negatively during pullback, indicating that traders quickly reduced directional exposure and reduced open interest when forced sellers closed their positions.

Earning profits threatens momentum

Two groups of sellers drove the flow. Dip buyers have made a significant profit and locked, and before they left at Breakeven, it was an underwater address.

Their combined activities created what the report described as “overhead supply”. This could stall price growth without corresponding rise in inflows. Exchange data shows a decline in incremental purchases while the permanent base rate remains restrained after last week’s shakeout.

The analysis highlights that periods of lateral trading or mild retracement strengthen the market structure by washing away excess leverage and reestablishing spot demand.

Such integration has historically preceded new advances. However, the report warned that pullback depth will depend on macro events, including further clarity on the proposed tariffs and whether ETF allocations will resume in recent clips.

Futures Reset Set Trading Range

Amidst the uncertainty of macros and risk of profitability, the report expects Bitcoin to vibrate between the $106,000 intraday lows last week and the $111,000 area until new spot demand absorbs overhead supply or a deeper reset supplier.

Seven weekly green candles show a sustained upward momentum, the longest winning streak since October 2023. However, the report noted that such movements are often cool as leverage normalizes.

On-chain data confirms slowdown. The cost-based (STH realized price) for short-term holders rose to $95,164, accelerating as the market regained that level.

Short-term holders have booked $11.4 billion in profits over the past 30 days, compared to just $1.2 billion the previous month. Realized profits peaked at $747 million a day, exceeding only about 8% of trading sessions in Bitcoin history.

The report then warned that it had recognized that STH had skyrocketed against territory normally associated with late-stage assembly. At this stage, the heavy distribution can be upside down if new capital does not arrive to absorb it.