Bitcoin Rally Falters Amidst Profit Taking

Bitcoin price fell below $83,000 during Tuesday trading before recovering toward $83,100 on Sept. 30. The move followed an eight-month high near $87,400 and added to evidence that the latest rally has lost some short-term momentum.

On-chain analysts are now watching the $84,000-$85,000 area, where Glassnode identified Bitcoin’s largest concentration of long-term-holder supply. Profit-taking has also increased as short-term traders sit on their highest unrealized margins since late 2024.

Bitcoin Price Falls Below $84K-$85K Supply Cluster

Glassnode identified $84,000-$85,000 as Bitcoin’s heaviest long-term-holder cost-basis cluster. More long-term-held BTC is concentrated in that band than in any other comparable price range.

The zone has therefore become an important technical and on-chain reference after BTC slipped back below it.

Bitcoin traded above the cluster earlier in September. Glassnode’s Sept. 23 research said price had cleared the area after it acted as a ceiling during much of the year.

The latest retreat has put that level back in focus.

CoinMarketCap showed Bitcoin near $83,100 on Sept. 30 after the asset traded around $83,661 the previous day. BTC was down roughly 0.8% over 24 hours at the latest snapshot.

Bitcoin had reached approximately $87,400 during the previous week, its highest level in eight months, according to CryptoQuant.

A sustained move back above $85,000 would therefore strengthen the recovery. Failure to reclaim the cluster would keep attention on lower support.

Profit Taking Reaches Its Highest Level in 2026

Interestingly, Bitcoin had previously surpassed this price level, rising as high as $87,000 previously before an over 3% decline in the past seven days. A key factor behind this decline has been the massive profit-taking by holders.

According to CryptoQuant, profit-taking reached a year high, with 25,700 BTC in realized profits on September 22, the largest single-day total in 2026.

Meanwhile, traders’ profit margins have also been stretched significantly. CryptoQuant data show that onchain unrealized profit margin has increased to 33%, the highest since December 2024.

Such stretched margins signify that traders have an opportunity to take more profits and have historically preceded downward selling pressure and price decline.

CryptoQuant analysts now expect a price pullback, noting that while the rally is still active, it is already showing cracks and running out of steam.

“Last week’s close above the 365-day MA confirmed a bull market, as CryptoQuant’s Bitcoin Bull Score Index sits at an extremely bullish 90/100. Yet after an eight-month high of $87.4K, several signals suggest the rally is losing momentum, and a pullback could follow,” they wrote.

Analysts Warn Bitcoin Could Fall to $80,000

Meanwhile, the CryptoQuant analysts identified $80,000 as the first support level to watch should a pullback occur.

While this is not confirmation, concerns about a pullback are not far-fetched, with open interest now at its lowest level since March. Leverage was one of the key factors driving up the Bitcoin price during this rally, with rising prices leading to billions in liquidated positions.

However, Glassnode analysts note that Bitcoin-denominated open interest is now down 20% from its August low, while the price has increased by 35% over that period. This means leverage no longer has much impact on the price movement.

Still, they believe that the flagship asset can continue its rally. For that to happen, it has to break through the current stalling point and maintain its price above $85,000.

This article is for informational purposes only and does not constitute financial or investment advice. Technical and on-chain levels remain conditional.