Bitcoin (BTC) price is currently hovering around the $94,000 mark, struggling to reclaim the key resistance level of $97,700. Recent on-chain data reveals a notable trend: investors are increasingly taking profits, while long-dormant wallets are becoming active. These movements suggest a potential increase in selling pressure in the near term.
Despite these bearish signals, corporate demand for Bitcoin remains robust. Semler Scientific and Strategy, formerly known as MicroStrategy, recently added significant amounts of BTC to their treasuries, injecting nearly $200 million into the market on a single day.
On-Chain Data Signals Profit-Taking and Increased Selling Pressure
Bitcoin's on-chain metrics provide critical insights into investor behavior. Santiment’s Network Realized Profit/Loss (NPL) indicator, which measures the daily network-level Return on Investment (ROI) based on on-chain transaction volume, has shown significant spikes. These spikes indicate that holders are, on average, selling at a substantial profit, contributing to increased selling pressure.
Multiple spikes were observed last week, with a particularly large one occurring on Monday. This pattern suggests that investors are capitalizing on recent price gains, which could lead to further short-term price declines.
Another key metric, Santiment’s Age Consumed index, has also shown concerning activity. Spikes in this index indicate that dormant tokens—those stored in wallets for extended periods—are being moved. Historically, such movements have often preceded short-term local price tops, as tokens are transferred to exchanges and sold.
The most recent uptick, recorded on Monday, was the highest since early February, signaling a potential readiness for a downtrend.
Corporate Bitcoin Demand Remains Strong
While retail investors are taking profits, corporate demand for Bitcoin continues to strengthen. Strategy announced the acquisition of 1,895 BTC for approximately $180.3 million, bringing its total holdings to 555,450 BTC. This move follows the company’s recent announcement of a new $21 billion at-the-market offering aimed at further expanding its Bitcoin reserves.
During the same period, Semler Scientific added 167 BTC to its treasury, now holding 3,634 BTC and ranking as the fourth-largest Bitcoin treasury company in the United States. This corporate accumulation highlights a growing acceptance of Bitcoin as a strategic reserve asset, which can boost its legitimacy and foster long-term adoption.
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However, not all corporate activity has been bullish. Riot Platforms sold 475 Bitcoins in April for $38.8 million to fund operations and avoid equity dilution. This marks the company’s first major BTC sale since January. Despite this, Riot’s leadership reaffirmed its long-term commitment to Bitcoin, citing strong conviction in its future potential.
Institutional Inflows Support Bitcoin ETFs
Institutional interest in Bitcoin remains robust, as evidenced by the performance of US spot Bitcoin Exchange Traded Funds (ETFs). According to SoSoValue data, these ETFs recorded an inflow of $425.45 million on Monday, continuing a streak of positive inflows since the previous Thursday.
Sustained and intensifying inflows into Bitcoin ETFs could provide the necessary demand to counterbalance selling pressure, potentially driving prices higher in the medium to long term.
Bitcoin Price Analysis: Key Levels to Watch
Bitcoin price recently retested the critical resistance level of $97,700 but faced rejection, leading to a decline of nearly 3% over the following days. As of Tuesday, BTC is stabilizing around $94,000.
If the correction continues, Bitcoin may retreat toward the next key support level at $90,000. Momentum indicators on the daily chart show bearish signals. The Relative Strength Index (RSI) has declined from overbought levels near 70 to 59, indicating fading bullish momentum. A drop below the neutral level of 50 would further confirm bearish sentiment.
Additionally, the Moving Average Convergence Divergence (MACD) is on the verge of a bearish crossover. If this occurs, it could signal the beginning of a downward trend.
Conversely, if Bitcoin manages to break above the $97,700 resistance, it could rally toward the psychological $100,000 milestone.
Frequently Asked Questions
What does dormant wallet activity indicate for Bitcoin's price?
Dormant wallet activity often signals that long-term holders are moving their tokens, potentially to sell on exchanges. This can increase selling pressure and lead to short-term price declines.
How do corporate purchases influence Bitcoin's market?
Corporate purchases reduce the circulating supply of Bitcoin and signal institutional confidence, which can boost market sentiment and support long-term price appreciation.
What is the significance of Bitcoin ETF inflows?
Inflows into Bitcoin ETFs indicate strong institutional demand. Consistent inflows can counteract selling pressure and contribute to upward price momentum.
What are key indicators to watch for Bitcoin price trends?
Critical indicators include the RSI, MACD, on-chain metrics like Network Realized Profit/Loss, and significant support/resistance levels. These help gauge market sentiment and potential price movements.
How does profit-taking affect Bitcoin's short-term outlook?
Profit-taking increases selling pressure as investors capitalize on gains, often leading to short-term price corrections. Monitoring on-chain data can provide early signals of such activity.
Why is the $97,700 level important for Bitcoin?
The $97,700 level represents a major resistance point. A break above it could ignite a rally toward $100,000, while rejection may lead to a test of lower support levels.