Bitcoin (BTC) saw its highest level of on-chain profit-taking in five months as its price broke above $80,000, a move supported by surging demand from South Korean retail investors. On-chain data shows holders realized 14,600 BTC in daily profits, the largest amount since December 2025.
The heavy profit-taking was met with strong buying pressure, particularly from South Korea, where the “Kimchi Premium” reached 1.98% on May 7. According to data from analytics firm Santiment, the net realized profits hit $207.56 million on Sunday, a one-month high that signals a resilient market structure rather than a blow-off top.
This wave of selling transfers coins from long-term holders to new buyers entering near the $80,000 level, resetting the market’s cost basis. This dynamic creates a stronger support floor, as new entrants are less likely to sell during minor pullbacks. The $207 million in realized profit is a monthly high but remains far below the multi-billion dollar events that typically signal a cycle peak.
The price action leaves Bitcoin testing the crucial $81,000 resistance level. While the absorption of significant sell-side flow is a constructive signal, the market's direction may depend on whether institutional demand, primarily through US-based ETFs, can continue to absorb profit-taking from long-term holders. A failure to hold the $80,000 level could see a retest of support in the $73,000 to $75,000 range.
The rise in the Kimchi Premium to 1.98% highlights a divergence in regional market sentiment. The premium, which measures the price difference between South Korean exchanges and global counterparts, points to strong retail-driven demand in the country. This buying has provided a critical buffer, absorbing the 14,600 BTC in profits realized by holders on May 7.
Analysts view this dynamic as a sign of a healthy, maturing bull market. “When a high level of profit taking occurs while markets are on the rise, it’s generally a bullish signal that the uptrend can continue,” Santiment noted. The current profit-taking event is substantial but not indicative of a market top, which has historically been characterized by much larger profit realization events.
The recent price action has shifted the on-chain landscape. As long-term holders sell, new buyers establish a cost basis around the $80,000 mark. This structural shift thickens the layer of support near current prices, making a sharp correction less probable.
However, some analysts remain cautious. While the lower-timeframe structure holds above the $73,000-$75,000 support zone, the rejection near $81,000 suggests a battle for control. The next major upside target sits in the $86,000 to $89,000 range, but a sustained break above $81,000 is required to confirm bullish continuation. The interplay between spot ETF inflows and continued profit-taking will be a key determinant of the next major price move.
This article is for informational purposes only and does not constitute investment advice.
