Bitcoin Hits Three-Month High; $81,500 Seen as Key Level

Bitcoin climbed to a three-month high, with the market focused on whether it can hold above $80,000.

Cointelegraph reported on May 4 that Bitcoin rose as high as $80,500 intraday, its strongest level since Jan. 31. It is now meeting resistance near $81,486, the average cost basis for short-term holders.

That threshold represents the average purchase price of investors who bought within the past 155 days. If Bitcoin moves above it, holders who had been sitting on losses could return to profit, potentially easing selling pressure. Traders are watching whether the cryptocurrency can close above $81,500 on a daily basis.

On-chain indicators also suggest selling pressure is easing. CryptoQuant contributor Crazyyblockk wrote that losses for short-term holders had narrowed to about 2.17%, while long-term holders remained up about 27% and were not actively selling.

The SOPR metric, which shows whether coins are being sold at a profit, has risen to 1.09, indicating an increase in profit-taking across the market. About 97% of recent exchange inflows have come from short-term holders.

Still, rising Bitcoin balances on exchanges remain a risk factor. Recent net inflows to exchanges tracked by Bitcoin analyst Axel Adler Jr. totaled about 8,512 BTC, and a substantial portion has remained on exchanges without being sold, leaving potential sell-side supply in place.

Cointelegraph said the market sees scope for a further advance toward $84,000 if Bitcoin holds above $80,000. A drop below that level, by contrast, could lead to a pullback toward about $76,500.