Bitcoin Crashes from Dazzling Heights—Who Let the Profit Takers In? 😱

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Well, darlings, Bitcoin had itself a glamorous joyride, sashaying past the $105,000 mark early Monday—how dreadfully nouveau riche! All this euphoria was sparked by whispers of trade deals wafting from diplomatic drawing rooms.

Risk assets everywhere tossed off their inhibitions—positively giddy! Our beloved Bitcoin leapt over the $100k hurdle last week, setting hearts aflutter and champagne corks popping. Stocks, never wanting to be left out of the soiree, also joined the knees-up. This was helped along by diplomatic politesse: the US and China agreed on a 90-day “let’s-get-along-for-now” truce—one wonders if someone spiked the punch.

But, as night follows day (and hangovers follow parties), all that glitter quickly lost its luster. The price tumbled back to $103k, and it didn’t take Sherlock Holmes to figure out why: profit takers, those notorious party-poopers, slipped in to drain the punch bowl. 🍾

Glassnode, the ace on-chain analytics sleuths, reported on X that profit-taking is giving Bitcoin a rather severe case of the wobbles. Oh, don’t fret, though! Their BTC Supply Mapping spells out that demand from new buyers remains plucky as ever. The First-Time Buyers Relative Strength Index has clung to 100 all week—like a debutante to her first chaperone.

Momentum buyers, however, have all the energy of a club bore at 3 a.m., with RSI around 11. So who’s left turning up the lights? Yes, our dear profit takers, probably counting their coins and hailing their chauffeurs before the punch runs dry.

$BTC Supply Mapping shows sustained strength in new demand. First-Time Buyers RSI has held at 100 all week. But Momentum Buyers remain weak (RSI ~11), and Profit Takers are rising. If fresh inflows slow, lack of follow-through could lead to consolidation:

— glassnode (@glassnode) May 12, 2025

profit-taking is on the up, and without a fresh moneyed crowd storming the ballroom, Bitcoin may be condemned to a “consolidation phase”—the societal equivalent of a country weekend with nothing to do but play whist.

The Bitfinex Alpha brigade—always ready with a dash of optimism—insist that macro-economic breezes are at our backs, and that even short-lived stumbles will be smoothed over by bullish types with sturdy chequebooks. 📈

They point out that capital rotation into Bitcoin is absolutely robust; the asset’s realised cap just hit a new all-time high, the financial equivalent of acquiring a bigger yacht.

Meanwhile, exchange-traded fund inflows gleam, and fewer coins languish at a loss—altogether très chic for Bitcoin.

“With rising spot volumes and institutional-led ETF flows, Bitcoin is now lounging on rather solid foundations. Should the ever-capricious macro conditions remain in our favour, the little dips will be swiftly mopped up, and BTC could sashay off to dazzling new highs,” they opined, likely while sipping martinis.

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2025-05-12 22:02