The bitcoin market has encountered a familiar challenge since prices surged past $70,000 last week: a significant increase in profit-taking activities.
According to blockchain analytics company Glassnode, over $20 million worth of BTC is being sold every hour as investors realize their profits.
“Every attempt to breach the $70kâ$80k range encounters limited liquidity and profit-taking pressure, which restricts any upward movement. The latest rally towards the >$70k level was curtailed by >$20M/hour in profit realization,” Glassnode stated on X.
The implication is evident: the $70,000â$80,000 range serves more as a distribution zone rather than a battleground for conviction, reflecting trends observed since February.
In essence, any rallies exceeding $70,000 are repeatedly transforming into liquidity events. Rather than buyers pursuing upward momentum, existing holders are utilizing price strength as an opportunity to exit their positions. Consequently, each price increase faces immediate resistance from supply influxes.
Bitcoin is finding it difficult to gain traction above the $70,000 mark. Prices briefly reached nearly $74,000 on Saturday but fell back below $71,000 at the time of this writing due to escalating oil prices influenced by stalled peace talks between the U.S. and Iran impacting U.S. stock futures negatively.
Until this pressure of selling at over $20 million per hour subsides, bitcoin’s upper limit will not be determined by technical factors but rather behavioral ones.