Bitcoin's March all-time high saw a spike in profit-taking by long-term holders, but this activity has since begun to taper off, a Glassnode report said.

"Profit-taking, typically by long-term holders, tends to ramp up around all-time high breaks, but is cooling down in recent weeks," Tuesday's Glassnode Insights report said.

According to the report, the balance of assets between long-term bitcoin holders and new demand suggests the current market is in the early stages of a euphoria, or price discovery, phase. However, the Glassnode analysis noted that previous euphoria phases have experienced numerous price drawdowns exceeding 10%, with the majority being much deeper, with 25% plus price corrections being commonplace.

"There has been just two around 10% plus price corrections since …