Bitcoin Price Stalls Near $80K as Profit-Taking Limits Rally

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Bitcoin Price Stalls Near $80K as Profit-Taking Limits Rally

Highlights:

  • Bitcoin is struggling near $80,000 as more holders sell and take profits after the recent rally.
  • Strong ETF inflows are helping Bitcoin handle the extra selling pressure coming from investors locking in gains.
  • If buyers stay strong, Bitcoin could break $80,000 and move toward the $88,000 to $90,000 range.

Bitcoin is finding it hard to stay above $80,000 as some holders sell to lock in profits. Meanwhile, steady buying from U.S. spot Bitcoin ETFs is helping support the price. In an August 26 CryptoQuant Quicktake, the on-chain analytics firm said Bitcoin had again tested $80,000 but failed to stay above the level.

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ETF inflows and lower U.S. Treasury yields have helped demand, while profit-taking from existing Bitcoin holders continues to limit further gains. On-chain data shows that nearly every major investor group has moved back into profit.

CryptoQuant’s unrealized profit and loss indicator stood at 21.1 for long-term holders and 13.4 for short-term holders. The reading was 13.9 for capital held between one day and one month, while the newest investors recorded 5.3. More investors sitting on profits gives Bitcoin a healthier market structure. However, it also means more holders now have gains they can lock in by selling.

Bitcoin Holders Take Profits Near $80K

CryptoQuant also looked at the Spent Output Profit Ratio, or SOPR, which helps measure whether investors are selling Bitcoin at a profit or loss. The ratio between long-term holder SOPR and short-term holder SOPR briefly climbed to around 1.4 as Bitcoin approached $80,000. According to CryptoQuant, long-term holders were realizing profits at a higher relative rate than short-term investors during that move.

However, the ratio later dropped to 0.93. Short-term holders are now showing stronger realized performance compared with long-term holders.

CryptoQuant described the market’s main test clearly:

“The key question is not whether Bitcoin can briefly touch $80,000, but whether new demand can absorb selling from profitable holders.”

That demand remains visible in the ETF market. According to SoSoValue data shared by Wu Blockchain on August 26, U.S. spot Bitcoin ETFs recorded $314 million in net inflows on August 25, marking their seventh straight trading day of positive flows. BlackRock’s IBIT accounted for most of the buying with about $284.42 million, while Fidelity’s FBTC brought in another $15.45 million. None of the listed Bitcoin ETFs recorded a net outflow that day.

Bitcoin Could Target $88K-$90K if Demand Holds

CryptoQuant said Bitcoin could move toward $88,000 to $90,000 if it breaks above $80,000 and buying stays strong. However, Bitcoin needs to hold the $75,000 to $76,000 area. If it falls below this level, more holders may start selling and push the price lower.

Bitcoin’s broader rally has gained strength from rising spot demand, ETF inflows and improving market conditions. CryptoQuant’s separate August 25 research report also pointed to a wider shift in market momentum. Its Bitcoin Bull Score jumped from 30 to 80 within a week, with eight of its 10 indicators turning bullish.

Bitcoin was trading around $78,810 at the time of writing, down about 1.3% over the past 24 hours but still up roughly 23% over the past seven days. The pullback comes after BTC briefly moved above $80,000 during its sharp weekly rally.

BTC Price Chart
BTC Price Chart: CoinMarketCap

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