Bitcoin briefly fell below $80K as traders realized profits at the highest level since December 2025, CryptoQuant said.
Bitcoin (BTC) briefly fell to $79,800 on May 7 after hitting resistance near $82,800, pulling back from a rally that had taken the asset to roughly $82,500 on May 6, its highest level since January 2026. The drop came alongside a bearish divergence in the Relative Strength Index (RSI) on shorter timeframes, a technical pattern that signals weakening buying pressure during an upward price move.
On-chain analytics firm CryptoQuant reported that Bitcoin holders realized 14,600 BTC in daily profits on May 4, the highest single-day figure since Dec. 10, 2025. The firm linked the spike to a 37% recovery from April 2026 lows, which brought a large portion of holders back into profitable territory. CryptoQuant called the event the first significant profit realization since December 2025.
Short-term holders have been closing profitable positions since mid-April 2026, according to CryptoQuant. The firm also reported that the 30-day net realized profit for Bitcoin traders has returned to positive territory, meaning more holders closed positions at a gain than at a loss during that window. CryptoQuant described the development as a structural inflection point in current market dynamics.
ETF Inflows Hit 4-Month High as Selling Pressure Builds
The current scale of profit-taking, measured at a net of around 20,000 BTC, remains well below the 130,000 to 200,000 BTC range CryptoQuant associates with bull market transitions. The firm said this gap supports its classification of recent price action as a bear market rally rather than a lasting trend shift. It also noted that unrealized profit growth has reached levels last seen in June 2025, which it flagged as a signal of elevated correction risk.
Several data points suggest the pullback may be limited in the near term. Spot Bitcoin exchange-traded fund (ETF) net inflows reached $1.05 billion for the week ending May 7, the strongest weekly intake since late January 2026, according to SoSoValue. A positive close on May 9 would make it the largest weekly ETF inflow return in nearly four months.
Swissblock data showed the Bitcoin Risk Index has reset to near zero, with ETF net flows turning positive at roughly 3,000 BTC. "ETF demand is absorbing selling pressure. This remains a flow-driven breakout," Swissblock said. Historically, low-risk readings have preceded renewed accumulation near key support levels.
Traders have flagged several support zones to watch if selling continues. Crypto trader Jelle pointed to $78,000 as the first major floor and said a retest of the 200-day moving average could open the door to another push higher. Trader Killa XBT identified a deeper support range between $74,700 and $76,300. Bitcoin was changing hands at $80,150 at the time of writing, recovering from an earlier low of $79,692. Ethereum (ETH) and XRP each fell more than 2% on the day, trading near $2,301 and $1.39, respectively, while over $269 million in crypto long positions were liquidated in the prior 24 hours, according to CoinGlass.
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