Following an 8.9% increase over the previous day, Bitcoin [BTC] was trading at $76,522.29, finally breaking through the long-tested resistance level of $70,000.
Given the current price action, Bitcoin is currently facing a record-breaking, largest profit-taking UTXO movement in history, as reported by CryptoQuant.
At the same time, BTC is getting closer to a critical resistance zone where many recent buyers will finally have a chance to exit at breakeven.
However, this does not mean that those coins are being sold, as there is still room for bearish pressure. For context, an Unspent Transaction Output (UTXO) is a portion of Bitcoin that was acquired during a transaction but hasn’t been used yet.
Does this mean BTC has recovered completely?
So, as per the chart, BTC’s profit-taking activity has surpassed a previous peak that coincided with Bitcoin’s most recent all-time high at $76k.
Back then, holders had a strong incentive to lock in profits when Bitcoin was close to an ATH because they had accumulated significant unrealized gains.
However, the current scenario is different because Bitcoin isn’t necessarily at a similarly euphoric market peak, last seen in October 2025.
In fact, in the current scenario, BTC is rebounding from a time when many short-term investors were in a bearish slump. Therefore, the current scenario is more like risk reduction rather than big profit-taking.
Adding more to the ongoing situation, CryptoQuant noted,
The all-time surge in profit-taking UTXO activity suggests that this sense of relief is already activating potentially movable supply.
Are investors still underwater?
However, for this momentum to sustain, the realized price of the Short-Term Holder (STH) is important to consider.
Hence, investors who were previously underwater now have a chance to pull out around breakeven as Bitcoin gets closer to this level, which could result in a sizable supply wall.
Now, whether buyers can absorb this supply is the crucial question. The recovery might get stronger if high demand absorbs the selling and Bitcoin stays at or above the STH realized price.
But the realized STH price may turn into resistance and lead to another drop if sellers outnumber buyers.
BTC price action and more
This comes on the heels of Bitcoin’s MVRV (Market Value to Realized Value) ratio standing at 1.38 at press time, meaning Bitcoin’s market value was roughly 38% higher than its realized value.
This indicates that unrealized profits have rapidly increased throughout the market thanks to the price recovery. However, the SOPR below 1 at 0.7 still indicates that the market is not effectively absorbing profit-taking, urging caution.
Final Summary
- Despite Bitcoin’s 9% jump in the price action, there is still room for bearish pressure.
- The MVRV ratio suggests profit, but SOPR below 1 suggests caution.