Bitcoin experienced a 37% recovery but faced significant selling pressure, with traders cashing out nearly $1.2 billion in one day. This selling spike may indicate a local price top amid ongoing bear market resistance.
Key points
Traders sold nearly $1.2 billion worth of Bitcoin in one day
Bitcoin rose 37% from $66,000 to $82,380
The 200-day moving average is a significant resistance level
Selling spikes may indicate a local price top in bear markets
Daily realized profits reached their highest since early December
Traders cashed out nearly $1.2 billion worth of Bitcoin in a single day last week — a sign that the recent recovery may be running out of steam.
On May 4, investors sold 14,600 Bitcoin, pushing daily realized profits to their highest point since early December.
According to CryptoQuant, that kind of selling spike during a bear market rally has historically marked a local price top.
A Rally Under Pressure
Bitcoin climbed roughly 37% over six weeks, rising from $66,000 in early April to briefly touch $82,380. That level lines up with the cryptocurrency’s 200-day moving average — a technical marker that proved to be a wall during the 2022 bear market.
Back then, Bitcoin hit that same average in March before sliding further into a prolonged decline. CryptoQuant’s latest research draws a direct line between that episode and today’s setup.
Unrealized profits among traders also spiked during the recent run-up. On May 5, profit margins reached over 17%, the highest reading since June of last year.
Bitcoin traders’ unrealized profit margins hit 17.7%, the highest since June 2025.
The last time margins reached these levels while Bitcoin tested the 200-day MA was March 2022, just before the downtrend resumed. pic.twitter.com/Zgfe9jFTiv
Data shows that figure mirrors conditions last seen in March 2022 — right before Bitcoin resumed its fall.
The combination of profit-taking and a historically significant resistance level has prompted CryptoQuant to flag the possibility of a trend reversal.
Inflation Data Adds To The Pressure
Outside the crypto market, broader economic signals are adding to the uncertainty. The US Labor Department reported that producer prices rose 1.4% in April, the steepest increase in four years.
Q&A
What caused the recent Bitcoin sell-off of $1.2 billion?
The sell-off was driven by traders cashing out profits, marking the highest daily realized profits since early December.
How much did Bitcoin rise before facing resistance?
Bitcoin rose approximately 37%, climbing from $66,000 in early April to nearly $82,380.
What does the 200-day moving average indicate for Bitcoin?
The 200-day moving average is a technical marker that has historically acted as a resistance level during bear markets.
What historical patterns are associated with selling spikes in bear markets?
Historically, selling spikes during bear market rallies have indicated a local price top, suggesting potential price declines.
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Bitcoin has grown more sensitive to US economic data as Wall Street adoption has expanded, and the inflation report pushed the price down 2.3% in 24 hours to around $79,250.
BTCUSD trading at $79,653 on the 24-hour chart: TradingView
If selling pressure does push Bitcoin lower, CryptoQuant puts the next major support around $70,000. That level reflects the average price at which all Bitcoin was last transacted and has historically shifted from resistance to support during bear markets.
At that point, short-term traders would have little unrealized profit left, removing much of the incentive to sell.
Bulls Still See A Different Path
Not everyone reads the charts the same way. MN Capital founder Michaël van de Poppe said Bitcoin could make a fast move to $90,000 if the US Senate advances the CLARITY Act, a long-awaited piece of crypto legislation.
This can literally go both ways.
If this continues to grind upwards, with the upcoming CLARITY Act tomorrow, I would assume we might see a fast move to $90K in a matter of days for #Bitcoin.