Bitcoin's recovery to $82,000 was also 'fake'...market 'stumbles' under profit-taking bomb

▲ Bitcoin (BTC)

An analysis suggests that while Bitcoin (BTC) attempted to break past $82,000, profit-taking pressure outweighed new demand, weakening its upward momentum. On-chain analytics firm Glassnode diagnosed that the recent rebound is not yet sufficient to confirm a structural uptrend reversal, and if a deeper correction occurs in the current range, this rally could be interpreted as a short-term peak within a bear market.

FXStreet reported on May 21 (local time), citing a Glassnode report, that internal vulnerabilities were revealed in Bitcoin's movement towards the $82,000 mark. Glassnode analyzed that Bitcoin's recovery is under pressure as investors' profit-taking surpasses new demand.

Bitcoin once recovered to $78,300, a level referred to as the True Market Mean. However, Glassnode explained that the recovery to this price range is only a necessary condition for a market structure shift, not a sufficient one. It also noted that in past cycles, sustained sideways movement for weeks to months near this model was required before a full-fledged bull market began.

The trend of profit-taking was also confirmed by figures. According to Glassnode, the 30-day average realized profit/loss ratio surged from 0.4 in February to 1.8 last week. This indicates that investors are quickly locking in profits during price rebound periods. The report pointed out that the market's inability to maintain upward momentum amid increasing profit-taking is a sign that demand has not recovered enough to absorb selling pressure.

On-chain data showed that the average purchase price for investors who bought Bitcoin in the recent rally was $78,200. As Bitcoin fell below this level again, positions bought in that range entered a loss zone, and the existing support level is highly likely to turn into a future resistance level. The average purchase price for investors who bought Bitcoin between February and April was $71,400, and this area was evaluated as a key support zone where holders still maintain a certain profit.

Signs of weakening demand continue in the spot market as well. Glassnode analyzed that selling pressure across exchanges remains high. It also explained that the market structure relies more heavily on leverage exposure than organic buying, and long positions remain high even as spot demand weakens.

Glassnode assessed that the Bitcoin market remains in a delicate balance. To continue further recovery, stronger demand is needed to absorb the ongoing profit-taking, and if demand recovery is not accompanied, Bitcoin could again face correction pressure.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*