Bitcoin Profit-Taking Near $77K Signals Weakening Rally Momentum

Bitcoin is struggling to sustain gains above $77,000 as repeated profit-taking by short-term holders creates persistent selling pressure. Despite briefly reaching $79,500, the cryptocurrency has failed to build momentum toward the $80,000 level.

Short-Term Holders Drive Selling Pressure

Data shows that around 150,000 BTC has been moved to exchanges since mid-April, largely by short-term holders wallets holding Bitcoin for less than 155 days. Over three consecutive sessions alone, transfers totaled approximately 65,000 BTC, 54,600 BTC, and 39,000 BTC. These inflows have added to overhead resistance, limiting upward price movement.

Declining Spot Volumes Reflect Weak Market Conviction

Spot trading activity has dropped sharply, reaching levels last seen during the late 2023 bear phase. Major exchanges recorded significant declines, indicating reduced investor interest at current price levels. Lower volumes often signal hesitation among buyers, making it harder for prices to break key resistance zones.

Market Needs Fresh Demand for Breakout

Derivatives data shows a slight recovery in liquidation dynamics, but overall participation remains subdued. Open interest has declined to around 292,000 BTC, suggesting reduced leverage in the market. For Bitcoin to break higher, renewed spot demand and increased trading activity will likely be required to support a sustained rally.