Bitcoin Stuck Around $80K Due to Profit-Taking Pressure

Bitcoin's (BTC) price has been fluctuating around the $80,000 mark, but analysts say it may not be able to sustain a breakout above this level. According to XWIN Japan, nearly every Bitcoin investor group has returned to profit as the cryptocurrency approached $80,000, creating a problem for short-term holders who are now selling their coins.

XWIN's research shows that long-term holders have been realizing profits at a higher relative rate compared to short-term holders. The SOPR Ratio, which compares profit-taking by long-term holders with that of short-term holders, has fallen from 1.4 to 0.93. This means that short-term holders are now showing stronger realized performance relative to long-term holders.

XWIN points out that any sustained breakout above the $80,000 mark, coupled with rising ETF and spot demand, might be one way through which Bitcoin can reach the $88,000-$90,000 price point. However, the firm notes that the $75,000-$76,000 mark is a crucial level to pay attention to if prices decline further.

Another analyst, BorisD, agrees that momentum has cooled after a huge weekly move. He points out that Binance's volume delta, which tracks the difference between aggressive buying and selling, fell from $1.17 during Bitcoin's move from $63,000 to $70,000 to about $350 million near $80,000.