BTC Holds Above $80K Despite 2-Year Low Activity: Bullish or Fragile?

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<a href="https://jpyeur.com/btc-usd/">BTC</a> Holds Above $80K as Realized Profits Peak, but Activity Hits 2-Year Lows

Key Takeaways:

  • BTC at $80,800, after crossing $81,300 on May 5
  • Net realized profits: +$207.56M Sunday.
  • Daily active addresses: 531K.
  • New wallets created daily: 203K.
  • Price rose 22% in five weeks on 2-year low participation.
  • All three MAs below price: 50 at $79,467, 100 at $78,803, 200 at $77,782.
  • RSI: 63.46 – building momentum, not overbought.
  • Confirmation signal: network activity rising while price holds above $80K.

Two Datasets: Two Opposite Readings

On May 4th, Bitcoin‘s price surged past $80,000 for the first time in three months, and it’s currently staying above that mark at $80,824 as of May 5th. The price briefly peaked at $81,300 before settling slightly. This upward movement, and the market’s ability to maintain prices above $80,000, suggests that investors are buying the dips instead of reacting negatively to selling.

Two Santiment datasets measured the same move and reached opposite conclusions about what it means.

On Sunday, profits reached $207.56 million, the highest level in a month. This indicates strong demand, as buyers are readily stepping in to absorb selling pressure even as prices increase – a positive sign for the market. It suggests the market has successfully weathered a challenging period.

Daily activity on the Bitcoin network is currently very low. There are around 531,000 active addresses each day, and only about 203,000 new wallets are being created – both numbers are the lowest they’ve been in two years. Despite this low level of network use, Bitcoin’s price has increased by 22% in the last five weeks, which could be a cause for concern, suggesting the price rise isn’t supported by widespread adoption.

Both perspectives are correct; they simply explain the same price change in different ways. The apparent disagreement comes from how the article presents the information.

Why $207M in Profit-Taking at $80K Is a Bullish Signal

The recent positive market signal comes from simple calculations. Bitcoin holders who purchased their coins at lower prices sold them on Sunday as the price surpassed $80,000, resulting in a collective profit of $207.56 million. This profit represents the difference between their original purchase price and the current value of the coins, and totaled $207.56 million across the entire network on Sunday.

A large sale of $207.56 million happened as the price reached a monthly high, but an equal amount of buying quickly absorbed it. Every coin sold by those taking profits was purchased by someone else, even at $80,000 per coin. This shows the market isn’t lacking demand; instead, demand is strong enough to handle hundreds of millions of dollars in profit-taking without any significant price drop.

Another positive factor is the resetting of the average purchase price. When investors sell for a profit around $80,000, those coins are bought by new investors at that price. These new owners are less likely to sell quickly if the price dips slightly to $79,000. This increases the overall average cost basis across the network, creating a stronger price floor. A market with coins regularly changing hands at higher prices is more stable than one where long-term holders could potentially sell their holdings at any time.

The third important factor is the amount of profit being taken. While current profits are high for the month, they aren’t the highest they’ve ever been. The chart indicates Bitcoin has handled similar dips in the past and continued to rise. A small amount of profit-taking that doesn’t cause the price to fall suggests the market is strong and can recover.

531K Active Addresses at $80K Describes a Narrow Move

Daily activity on the network is down, with only 531,000 active addresses and 203,000 new wallets created each day – the lowest levels seen in two years. Compared to the highs of 2024-2025, activity is considerably lower. This isn’t just a small dip; it represents the lowest point in network activity over the past two years.

The current situation is concerning. Prices have increased significantly – 22% in just five weeks – but fewer people are using the network than we’ve seen in two years. This means the price increase is being fueled by a small number of existing investors, not new ones, which isn’t sustainable. If those major investors decide to sell, there likely won’t be enough new buyers to prevent prices from falling.

According to data from Santiment, price increases are often unstable if they aren’t accompanied by more activity on the blockchain.

The Contradiction That Both Datasets Describe

Looking at both sets of data together raises a key question: how could the market handle $207 million in profits being taken out with so few active users – only 531,000, the lowest in two years? The numbers suggest the profits weren’t absorbed by new, smaller investors opening new accounts. Instead, it appears that existing, large investors were the ones buying, adding to their current holdings around the $80,000 price point.

Right now, big investors are both selling and buying at around $80,000. Some are cashing in on profits, while others are using the dip to buy more. This balance between buyers and sellers is keeping the price stable. Regular, individual investors haven’t really entered the market yet.

The current market setup isn’t necessarily a sign of declining prices, but it likely won’t last. When trading is limited to a small group of large investors, price increases have a limit. If those investors start selling, there’s no fresh demand to prevent prices from falling. The recent increase in everyday investors – shown by more active addresses and new wallets – could change this, turning what’s been a limited trading pattern into a wider market trend.

Santiment points out a compelling situation: Bitcoin hit $80,000 with a relatively low number of active users—around 531,000. If the number of active wallets increases back to the higher levels seen during the peak of 2024-2025 (around 100,000 new wallets), the price could rise significantly. However, this increase relies on more everyday investors getting involved, and current data suggests they haven’t yet.

Clean Technical Structure, One Missing Ingredient

On May 5th, the price chart for BTC looks healthy from a technical perspective. Currently at $80,824, the price is above all key moving averages – $79,467 for the 50-day average, $78,803 for the 100-day average, and $77,782 for the 200-day average. The Relative Strength Index (RSI) is at 63.46, indicating growing momentum without suggesting an overbought situation. This suggests there’s potential for further price increases without immediate resistance based on these technical indicators.

As a crypto investor, I’m looking at both the charts and the on-chain data, and I don’t see them disagreeing – just looking at different time scales. The technical analysis suggests the price could keep going up, but the on-chain data – which shows actual user activity – hasn’t quite confirmed that’s happening yet. Basically, the technicals are short-term bullish, but we need to see more people actually participating to support a longer-term move.

The market is showing positive signs: daily active addresses have climbed above 600,000, and the price remains stable above $80,000. If these trends continue, it suggests the recent activity from a small group of large investors is expanding to include wider participation, potentially signaling a more sustained upward trend.

A drop below the $79,467 level (the 50-day moving average) would signal a price decline, especially if the number of active addresses stays the same or decreases. This suggests that large-scale trading has finished and hasn’t drawn in enough individual investors to maintain the current price.

Bitcoin is currently trading at $80,824. Analysis of profits and network activity both suggest this price level is stable, though support is relatively tight. The key now is to see which of these factors – profits or network activity – shifts first.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Always do your own research and talk to a qualified financial advisor before investing.

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2026-05-05 11:00