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
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
