Bitcoin slips below $80,000: Why the 'Trump rally' is hitting a wall of profit-taking

Bitcoin slipped below the $80,000 mark on Wednesday following a brief breakout attempt. According to CryptoQuant, the recent 37% rebound resembles a bear-market relief rally rather than a confirmed trend reversal, as short-term holders exit with significant gains and unrealized profits reach levels that historically trigger accelerated selling.

Market maker Enflux attributed the initial surge to a macro reaction to President Donald Trump pausing a U.S. naval operation near the Strait of Hormuz, which lowered oil prices and boosted equities. However, analysts warn this catalyst may lack durability. Meanwhile, Glassnode maintains a more constructive outlook, noting that Bitcoin has reclaimed key on-chain levels like the True Market Mean at $78,200, though it faces major resistance around $85,200.

Despite the recovery, caution prevails. Long-term holders are starting to realize profits, and prediction markets like Polymarket show low confidence in an immediate move toward $85,000. Additionally, experts at Consensus Miami noted that institutional adoption of decentralized platforms remains hindered by security risks and KYC compliance challenges.

(Source：CoinDesk)