Bitcoin has slipped below the $80,000 mark, dragged down by fading institutional interest and a wave of profit-taking. On Thursday, the cryptocurrency was trading at $79,458, after failing to break through a key supply zone earlier in the week.
The pullback follows a massive outflow from spot Bitcoin ETFs, which saw $635.23 million withdrawn on Wednesday. That’s the highest single-day outflow since January, according to CoinGlass data. It’s also the second consecutive day of withdrawals this week. If this trend continues, Bitcoin’s correction could deepen, adding to the bearish sentiment.
Profit-taking adds to selling pressure
Alongside the ETF outflows, profit-taking among Bitcoin holders has surged. A weekly report from CryptoQuant shows that 14,600 Bitcoin were realized in daily profits on May 4, the highest figure since December 10. The 37% rally from April lows pushed many holders back into profitable territory, which tends to trigger selling. Historically, this kind of behavior often precedes further price drops, as traders lock in gains.
Technical outlook points to cautious trading
Bitcoin’s price faces immediate resistance at the 200-day Exponential Moving Average (EMA) of $81,986 and the key 61.8% Fibonacci retracement level at $83,437. On the downside, support sits at the 50% Fibonacci level around $78,962, followed by the 100-day EMA at $76,756 and the 50-day EMA at $76,479. If selling pressure intensifies, further supports lie at the 38.2% Fibonacci retracement near $74,487 and the broken upward trendline around $70,171.
The Relative Strength Index (RSI) is hovering in the mid-50s, which suggests a mild bullish bias. But the Moving Average Convergence Divergence (MACD) line remains in negative territory. That hints at only tentative upside momentum. The broader uptrend might still be intact, but the technical signals suggest traders are proceeding with caution.
What it means for Bitcoin’s next move
If Bitcoin can clear the 200-day EMA at $81,986, it could ease some immediate pressure. From there, resistance emerges at the 61.8% Fibonacci level and the horizontal barrier near $84,410. A daily close above that zone would strengthen the case for a renewed push toward the January highs of $97,924. For now, though, the path of least resistance appears lower, with the price struggling to hold above $80,000 and institutional demand showing signs of weakness.
