Bitcoin's rally faces pressure as profit-taking outpaces demand — Glassnode

• Bitcoin’s move above $82,000 lost momentum as rising profit-taking outweighed new demand.
• The Realized Profit/Loss Ratio climbed sharply from 0.4 to 1.8, signaling that investors quickly locked in gains into strength.
• Despite holding near $77,000, weak spot demand coupled with elevated long positioning makes the market structure fragile.

Weaknesses beneath the surface disrupted Bitcoin’s (BTC) recent push toward $82,000, as rising profit-taking outweighed fresh demand, according to a Wednesday report from Glassnode.

Bitcoin holds near key level amid falling demand

The asset briefly reclaimed the True Market Mean at $78,300. While the move marked a notable recovery, Glassnode noted that it did not yet confirm a broader market shift.

“Reclaiming this level is a necessary but not sufficient condition for a structural transition,” Glassnode stated in the report.

The firm added that previous cycles required extended consolidation above the True Market Mean before a true bull phase could begin. Without such an event, the recent rally could resemble past bear market rebounds rather than the start of a sustained uptrend. 

“Conventionally, pre-bull market phases require weeks to months of sustained consolidation around this model before a credible regime shift can be confirmed,” the report added.

A notable trend is the profit/loss ratio, which has climbed sharply in recent weeks. The 30-day average rose from 0.4 in February to 1.8 last week, reflecting a shift toward investors locking in gains.

Glassnode stated that the market’s inability to sustain momentum amid rising profit-taking suggests demand has not recovered sufficiently to absorb the volume of selling pressure.

“Any deeper correction from current levels would therefore reframe the recent rally as a local top within the ongoing bear market,” the firm added.

On-chain data also shows that investors who accumulated during the latest rally have an average cost basis of $78,200. With Bitcoin slipping back below that level, those positions are now in the red, turning a former support zone into potential resistance.

The average cost basis of investors who bought during February to April is $71,400. This level is now viewed as a key support area, where holders still retain some profit and may defend their positions.

Spot market activity continues to reflect weak underlying demand as selling pressure across exchanges remains elevated.

The report also points to a fragile market structure driven more by leveraged exposure than organic buying. “The market continues to carry elevated long positioning even as spot demand softens.”

Glassnode suggests the market remains in a delicate balance. Stronger demand will be needed to absorb ongoing profit-taking and help Bitcoin sustain its recovery, or it will face another pullback.

Bitcoin is trading at $77,900 at the time of writing, up 1.5% in the past 24 hours.