Bitcoin (BTC) price hovered around $94,000 on Tuesday, failing to close above the critical resistance level of $97,700 last week. On-chain data reveals growing signs of profit-taking, with dormant wallets showing unusual activity. If these long-held coins are transferred to exchanges, increased selling pressure could follow.
Despite these bearish indicators, corporate demand for Bitcoin remains robust. On Monday, Semler Scientific and Strategy—formerly known as MicroStrategy—purchased 167 and 1,895 BTC respectively, totaling approximately $196.5 million. This continued institutional accumulation highlights Bitcoin’s growing credibility as a long-term strategic asset.
Profit-Taking Intensifies as Dormant Wallets Show Activity
According to Santiment’s Network Profit/Loss (NPL) metric, Bitcoin holders are realizing profits at a notable pace. The NPL measures the average return on investment (ROI) across the network by analyzing on-chain transaction volumes. A sharp spike in this indicator suggests that a large number of tokens are being sold above their acquisition cost—typically a sign of profit-taking.
Last week saw multiple NPL peaks, with a particularly strong surge on Monday. This signals that many holders are cashing out at a profit, which may contribute to short-term downward pressure on price.
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Historically, such spikes often precede periods of consolidation or decline, especially when combined with other warning signs.
Another concerning signal comes from Santiment’s Age Consumed index, which tracks the movement of “dormant” coins—those that have remained untouched in wallets for extended periods. A spike in this metric indicates that older, long-held BTC is re-entering circulation.
For Bitcoin, historical patterns show that such spikes frequently precede short-term price tops. When dormant coins move—especially if they’re sent to exchanges—it often leads to increased sell-side pressure as holders prepare to offload assets.
Monday’s spike marked the highest level since early February, suggesting Bitcoin may be nearing a short-term top and preparing for a potential correction.
Strong Corporate Demand Offers Support
While short-term traders take profits, corporate treasuries continue to accumulate Bitcoin aggressively.
On Monday, Strategy announced the acquisition of 1,895 BTC for approximately $180.3 million, bringing its total holdings to 555,450 BTC. This purchase follows the company’s recent first-quarter earnings report, which revealed a new $21 billion at-the-market (ATM) offering program aimed at funding further Bitcoin purchases.
This strategic move reinforces the company’s long-term bullish stance on Bitcoin as a reserve asset. By leveraging equity financing instead of selling BTC, Strategy avoids reducing its holdings while still raising capital—demonstrating a mature approach to treasury management in the digital asset era.
Meanwhile, Semler Scientific added 167 BTC for about $16.2 million, increasing its total stash to 3,634 BTC. The company now ranks as the fourth-largest Bitcoin holder among U.S.-based public firms.
Corporate adoption plays a crucial role in strengthening Bitcoin’s legitimacy and long-term value proposition. When established companies allocate capital to BTC, it signals confidence in its store-of-value properties and can influence broader market sentiment positively.
However, not all corporate activity is buy-side. Riot Platforms sold 475 BTC in April for $38.8 million—its first major sale since January. The company stated the proceeds will fund operations and avoid equity dilution.
CEO Jason Les emphasized that the sale supports sustainable growth:
“These sales reduce the need for equity financing and limit stock dilution… We remain committed to our long-term Bitcoin treasury strategy.”
This balanced approach—selling modest amounts to fund operations while maintaining a core BTC holding—reflects an evolving model for crypto-native businesses.
👉 See how institutional strategies are shaping the future of digital asset investment.
Institutional Flows Remain Bullish
Institutional interest in Bitcoin remains strong, particularly through spot Bitcoin ETFs. According to SoSoValue, U.S. spot Bitcoin ETFs recorded $425.45 million in net inflows on Monday alone. This marks the fourth consecutive day of positive flows since Thursday.
Sustained inflows suggest growing confidence among institutional investors and could provide upward momentum if buying pressure continues to build.
The combination of corporate treasury purchases and ETF demand underscores a structural shift: Bitcoin is increasingly viewed not just as a speculative asset, but as a viable component of diversified portfolios and balance sheets.
Technical Outlook: Momentum Shifts Bearish
Bitcoin failed to reclaim the key daily resistance level near $97,700 last Friday, followed by a nearly 3% drop over the next two days. Price stabilized around $95,000 on Monday and dipped further to $94,000 by Tuesday.
If selling pressure intensifies, BTC could test the next major support level at $90,000.
Technical indicators are flashing caution signals:
- The Relative Strength Index (RSI) peaked in overbought territory (above 70) last Friday and has since declined to 59—showing weakening bullish momentum.
- A break below the neutral 50 level would confirm bearish momentum.
- Meanwhile, the Moving Average Convergence Divergence (MACD) is approaching a potential bearish crossover. If confirmed, it would generate a strong sell signal and reinforce expectations of further downside.
Conversely, a decisive breakout above $97,700 could invalidate the short-term bearish case and reignite the rally toward the psychological $100,000 milestone.
Frequently Asked Questions
What is network profit/loss (NPL)?
NPL measures the average profit or loss realized across all on-chain transactions for a given day. A spike indicates widespread profit-taking; a deep drop suggests panic selling.
Why are dormant wallet movements significant?
Coins held for years represent strong hands. When they move—especially toward exchanges—it often precedes increased selling pressure and potential price corrections.
How do corporate Bitcoin purchases impact the market?
They reduce circulating supply, boost market confidence, and reinforce BTC’s role as a long-term store of value—typically leading to bullish long-term effects.
What does sustained ETF inflow mean for Bitcoin?
Consistent inflows signal growing institutional adoption and demand. Over time, this can drive price appreciation due to limited supply and rising investor interest.
Can technical indicators predict Bitcoin’s next move?
While not foolproof, tools like RSI and MACD help assess momentum and trend strength. Used alongside on-chain data, they provide valuable context for short-term forecasts.
Is profit-taking always bearish?
Not necessarily. Moderate profit-taking after strong rallies is healthy. However, widespread selling—especially from long-term holders—can signal a top.
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