3 warning signs that Bitcoin's price surge may be at risk.

Bitcoin (BTC) has risen more than 10% in the past month despite continued volatility. During yesterday's trading session, the cryptocurrency briefly surpassed the $79,000 mark.

This was also the highest price since the beginning of February 2024 before cooling down slightly. At the time of writing, BTC is trading at $78,258, up 2.54% on the day.

Despite the impressive recovery, three key market indicators are currently sending warning signals.

3 reasons why Bitcoin's 10% monthly increase risks stalling.

Julio Moreno, head of research at CryptoQuant, said the rally was driven by activity in perpetual futures contracts. He also noted that demand in the spot market is still declining, albeit at a slower pace.

Moreno compared the current situation to January 2024, when BTC peaked at nearly $98,000 before sharply declining .

"There is a risk of a correction if traders start taking profits while demand in the spot market continues to decline," Moreno Chia .

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Data from Glassnode shows that the 24-hour simple moving Medium of Short-Term Investor Realized Profits has risen to $4.4 million per hour. This is nearly three times the $1.5 million threshold that marked local peaks this year.

“Without significant demand catalysts to absorb this wave of profit-taking and help prices remain above short-term investor levels, a downward correction from the current price range is entirely consistent with the trend indicated in this report. The combined signals suggest caution rather than overconfidence at this point,” the report concludes.

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Finally, Glassnode stated that BTC has just surpassed the True Market Mean at $78,100, a “significant cyclical development” according to the company. However, the next target above is $80,500, which is the Capital price point for short-term investors.

Investors who bought in between $60,000 and $70,000 are now close to their expected profit levels. According to Glassnode, this group has strong incentive to take profits. Furthermore, if the price recovers to $80,000, over 54% of recent buyers will see a return on their investment.

"This situation increases the likelihood of a short-term peak forming in the near future, so caution is advised even though the price has just broken above the True Market Mean," Glassnode further commented.

The warning signs are becoming increasingly clear. Whether new Capital can absorb the profit-taking pressure will determine whether the current recovery continues or reverses .