Bitcoin realized profits hit 1-month high—analysts weigh in

Bitcoin price surged to a four-month high above $80,600 on Monday, May 4, with the benchmark crypto asset breaching the $80k supply wall amid a broader uptick for risk assets.

Most of the intraday gains came after President Donald Trump announced Project Freedom, an effort aimed at escorting foreign cargo ships through the Strait of Hormuz.

But BTC’s surge despite the ongoing US-Iran tensions has elevated the number of profit holders to the highest level in over a month.

Bitcoin realized profits surge amid BTC gains

On-chain data shows the price gains toward $80,000 propelled Bitcoin's net realized profits to its highest level in over a month.

Crypto data and analytics firm Santiment reported that the metric reached 207.56 million on Sunday, a one-month high.

Meanwhile, Glassnode has highlighted intensified activity from the 2-year to 3-year holder cohort.

These are investors who accumulated positions ahead of the 2024 spot Bitcoin ETF launch.

As prices spiked from $78,000 to $80,000, this group ramped up profit-taking to over $209 million per hour, locking in gains of 60% to 100%.

"Long-term holders are using this strength to exit into liquidity," Glassnode shared on X.

Bitcoin revisited levels just below the psychological $80,000 mark as buyers paused to secure profits.

Yet analysts view this as a bullish indicator, with profit-taking during upward momentum often signaling confidence rather than panic.

"Profit-taking at $80K means demand absorbed the selling,” Santiment noted.

“Think of it like a stress test. Hundreds of millions of dollars worth of Bitcoin was sold by profit-takers... and the price still broke $80K. That means there were buyers willing to step in and absorb all that supply. Strong demand absorbing heavy sell pressure is a classic sign of a healthy, confident market", it added.

Bitcoin price outlook: Is $85,000 next?

Looking ahead, technical indicators point to potential upside.

The Relative Strength Index (RSI) hovers near 65, flirting with overbought territory but not yet into extreme conditions.

The MACD shows waning bearish momentum, and a golden cross could signal further gains.

Bitcoin’s gains have pushed it to above the supply wall established in early February.

If BTC encounters moderate profit-taking ahead, a retest of support and fresh uptick could see the market interpret it as resilience, not fragility.

Bulls could then eye $85,000 as the next milestone, but sustained demand will determine if they prevail and target $100,000.

According to CryptoQuant, Bitcoin is facing its “cost basis moment”, and what comes next depends on the $81,500 level.

“A confirmed daily close above 81k flips that level from resistance to support, opening the path toward $87–$92k. Failure sends price back to test new money realized price near 76k,” a CryptoQuant analyst noted.

On the downside, primary support lies at $75,645 and then $73,800.