Bitcoin Profit-Taking and Falling U.S. Demand Stall the Rally Near $79,000
Bitcoin held near $79,000 on May 13 as on-chain analytics firm CryptoQuant flagged a simultaneous rise in profit-taking and a decline in U.S.-based demand, placing the leading cryptocurrency at a junction that has historically preceded larger corrections. The price sat around $79,311 in late trading, down roughly 1.6% in 24 hours.
The combination of selling pressure from holders locking in gains and weaker regional demand removes two of the structural supports that drove the prior leg higher.
What the On-Chain Data Shows
CryptoQuant tracks a proprietary Coinbase premium index as a proxy for U.S. institutional and retail demand. The index measures the price difference between Bitcoin traded on Coinbase (COIN) and prices on offshore exchanges.
A falling Coinbase premium signals that U.S. buyers are less aggressive than global counterparts. According to a Decrypt report published May 13, CryptoQuant analysts said Bitcoin’s recent move had reached a level where profit-taking historically accelerates.
Profit-taking, in this context, refers to on-chain behavior where holders who bought at lower prices move coins to exchanges, typically to sell into strength.
When profit-taking coincides with weaker demand, the bid side of the market thins out. The resulting imbalance can push prices lower without a single dramatic catalyst.
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Background
Bitcoin (BTC) spent much of April 2026 recovering from a mid-$70,000 range after macro uncertainty tied to Federal Reserve rate path expectations weighed on risk assets broadly.
The recovery brought BTC back above $79,000 before Wednesday’s data emerged. Spot Bitcoin ETF flows were a key driver of that recovery, with several consecutive weeks of net inflows providing institutional demand support.
The Coinbase premium held positive through most of that period, suggesting U.S. buyers were leading the rebound. Wednesday’s on-chain reading represents a shift from that pattern.
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What to Watch
The critical level for Bitcoin is the $77,000 to $78,000 band, which served as resistance in late April before flipping to support.
A sustained break below that zone would draw attention to the $74,000 range tested in the prior correction. On the upside, a renewed increase in the Coinbase premium index would suggest U.S. demand has returned and would likely be accompanied by ETF inflow data confirming institutional re-engagement.
Spot ETF flow reports from issuers typically arrive with a one-business-day lag, so Thursday’s figures will be the next direct measure.
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