Recently, the Bitcoin market has shown obvious signs of cooling down. Since July, the apparent demand for Bitcoin has sharply declined from a peak of 174,000 coins to the current 59,000 coins, a drop of up to two-thirds. This trend is not only reflected in the overall market, but the purchasing enthusiasm of American ETFs and institutional investors has also significantly weakened, with the net purchase volume of ETFs over the past 30 days being only 11,000 coins, setting a new low since April this year.

Market sentiment has shifted from the previous 'extremely bullish' to a more moderate 'cooling bullish' state. The price of Bitcoin has significantly slowed down after breaking through the 120,000 USD mark. This change in sentiment is closely related to the profit-taking behavior of investors. Since July, Bitcoin holders have realized an astonishing net profit of 74 billion USD, with large investors (commonly known as 'whales') cashing out 2 billion USD in profit in just one day on August 16.

Despite the market correction, analysis indicates that the downside risk for Bitcoin may be limited. $110,000 could become an important support level, which is roughly equivalent to the actual cost for on-chain traders. This means that around this price level, the impetus for market participants to sell further may diminish, thereby providing a certain degree of support for Bitcoin's price.

Overall, the current Bitcoin market is experiencing a phase of slowing demand and profit-taking. Although it may face some pressure in the short term, based on on-chain data and market behavior analysis, Bitcoin still maintains a relatively robust fundamental. Investors and market observers should closely monitor these dynamics to better grasp the future market trends.