Bitcoin’s recent surge has faced a significant reversal as the leading cryptocurrency dipped below the $80,000 mark, marking a notable stall in its rally. Despite reaching nearly $82,500 on Wednesday, the top crypto asset lost momentum and traded at around $80,150 by Thursday morning. This fluctuation comes amidst a broader trend where Bitcoin has gained over 17% in the past month. However, analysts at CryptoQuant categorize this rebound as a “bear market rally,” suggesting that the upward movement may be temporary.
The increase in Bitcoin’s value has triggered a wave of profit-taking among traders, with CryptoQuant reporting that on May 4, holders realized a remarkable 14,600 BTC in daily profits—the highest figures since December 2025. The surge followed a 37% rally from April lows, pushing many holders back into a profitable scenario. Yet, CryptoQuant warns that the growing tendency to lock in profits could indicate a forthcoming correction. Historically, significant profit realizations during bear markets often precede local price tops or prolonged consolidation phases.
In terms of market dynamics, the data shows that the 30-day net realized profit for Bitcoin traders has turned positive, indicating a trend where more holders are recording gains than losses. This shift is described as a “structural inflection point,” although the current levels of profit-taking still lag behind what typically occurs during market transitions into bull phases.
CryptoQuant emphasizes that the profit-taking now at a net level of 20,000 BTC falls significantly short of the 130,000-200,000 BTC range associated with bull market transitions. As unrealized profits grow, the risk of a correction escalates, with traders increasingly incentivized to secure their gains.
For now, the correction may not materialize immediately, given the demand for perpetual futures and steady exchange inflows, combined with less severe drops in spot demand. These factors historically have supported continued near-term price strength during bear market rallies.
Currently, Bitcoin is more than 36% off its all-time high of $126,080, set in October. Other significant cryptocurrencies, such as Ethereum and XRP, have also experienced declines, with both dropping over 2% to around $2,301 and $1.39, respectively. In the trading arena, over $269 million in crypto long positions—trades speculating on price increases—were liquidated in the past 24 hours.
Amid these fluctuations, users on Myriad—a prediction market platform—express a cautiously optimistic outlook, estimating an 83% probability that Bitcoin will rise to $84,000 before it retraces to $55,000.
