Bitcoin is at risk of a sell-off after hitting the 200-day moving average resistance at $82,400, according to a CryptoQuant report. This level previously marked a significant resistance during the 2022 bear market, leading to a downward trend after being reached in March of that year. Traders' unrealized profit margins peaked at 17.7% on May 5, the highest since June last year, suggesting potential selling pressure from profit-taking.
Last week, daily realized profits soared to levels not seen since early December, with traders cashing out 14,600 BTC, valued at nearly $1.2 billion, on May 4. CryptoQuant noted that such profit peaks often indicate local price tops in bear market rallies. Should Bitcoin decline, the support level is around $70,000, a historically significant resistance-turned-support level during bear markets.
Bitcoin Faces Potential Pullback After Reaching Key Resistance
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