Bitcoin fell below $80,000, trading at roughly $79,840 at the time of reporting after a 1.76% decline. The move reflected a mix of geopolitical pressure and on-chain profit-taking, erasing part of the gains built up earlier in the rally.
Hormuz uncertainty weighs on risk assets
A major catalyst came from comments by Iranian official Mohsen Rezaei. He said Iran would reject the US proposal to reopen the Strait of Hormuz unless demands tied to war reparations were addressed, adding that symbolic concessions would not be enough. Because the strait remains a critical route for global oil trade, any shift in negotiations has direct implications for energy prices and risk-sensitive assets, including Bitcoin.
Reports said the fragile ceasefire talks between the US and Iran included a 12- to 15-year pause in Iran’s uranium enrichment, partial sanctions relief, and the reopening of the strait. Tehran, for its part, has asked for broader sanctions relief, compensation for damages, and recognition of its control over the passage. Washington rejected any framework that would require ships in international waters to pay Iran, and Secretary of State Marco Rubio said the US would not accept a transit fee system for the Strait of Hormuz. Market sentiment weakened again after President Donald Trump warned that bombing could intensify if a final deal remained out of reach.
On-chain data points to stronger profit realization
Geopolitics was only part of the story. On-chain metrics showed that a sizable round of profit-taking was unfolding after Bitcoin’s sharp advance this year. According to CryptoQuant, Bitcoin had climbed about 37% since early April and reached a three-month high. On May 4, realized daily profits hit 14,600 BTC, the highest level since December 2025. The Short-Term Holder SOPR rose to 1.016, a sign that many recent buyers were locking in gains.
On a 30-day average basis, Bitcoin investors moved back into net profit territory for the first time in months. In February and March, net losses had dropped as low as 398,000 BTC, but the trend has shifted in recent weeks. The report also noted that while spot selling has not shown sustained expansion and perpetual futures interest remains firm, repeated waves of profit-taking could bring higher volatility. Unrealized profit margin now stands at 18%, the highest reading since June 2025.
Support sits lower while resistance builds near $82,162
From a technical perspective, Bitcoin is consolidating in a short-term decision zone. Analyst Ali Martinez said key liquidity pools are clustered at $75,000, $73,000, and $70,000. If selling pressure between $80,000 and $84,000 starts to ease, the $73,000 to $74,000 band could become an important higher-low support area.
Another level in focus is Bitcoin’s 200-day exponential moving average at $82,162, which now acts as resistance. Analyst Michaël van de Poppe said Bitcoin may be going through a brief corrective phase and added that short pullbacks do not necessarily break the broader trend. On the upside, $86,500 stands out as the key resistance level. A break above that area could open the way toward the $90,000 to $92,000 range.