Bitcoin's Profit-Taking Problem: Will It Halt the Rally at $75K?

Bitcoin's recent price surge has been met with caution by analysts, who warn that a major test lies ahead. The cryptocurrency slipped back below $80,000 after testing the level again, with XWIN Japan pointing to profit-taking by existing holders as a major barrier.

XWIN noted that nearly every Bitcoin investor group has returned to profit as the cryptocurrency approached $80,000, creating a problem during a fast recovery: more profitable holders have a reason to sell. The SOPR Ratio, which compares profit-taking by long-term holders with that of short-term holders, briefly reached 1.4 as BTC neared $80,000 but has since fallen to 0.93.

According to XWIN, any sustained breakout above the $80,000 mark could be one way through which Bitcoin can reach the $88,000-$90,000 price point. However, it pointed out that the $75,000-$76,000 mark is the level to pay attention to if prices decline further.

Another analyst, BorisD, also pointed to fading buying pressure at higher prices, noting that Binance's volume delta fell from $1.17 during Bitcoin's move from $63,000 to $70,000 to about $350 million near $80,000.