Bitcoin Dips Below $80K as Analysts Say Profit-Taking Is on the Rise
Bitcoin surged to nearly $82,500 this week, marking its highest level since January, before slipping below $80,000. Over the past month, it has gained more than 17%, which analysts at CryptoQuant classify as a “bear market rally” rather than the start of a bull market. Profit-taking has increased, with daily realized profits reaching 14,600 BTC on May 4—the highest since December—and the 30-day net realized profit turning positive. However, profit-taking remains far below levels typically seen at the onset of bull markets. CryptoQuant cautions that rising unrealized profits increase the risk of a market correction, but factors such as futures demand and subdued spot selling could delay this. Bitcoin currently trades around $80,150, about 36% below its all-time high of $126,080. Other major cryptocurrencies like Ethereum and XRP are also down over 2% today, and over $269 million in long positions were liquidated in the past 24 hours. Despite this, prediction market users believe Bitcoin is more likely to reach $84,000 than to fall to $55,000 in the near term.
