Bitcoin Rally Stalls as ETF Demand Meets Holder Selling
Fhumulani Lukoto
- 2 min read
Image credit: Pexels
Bitcoin’s latest rally has slowed near the $78,000 area as strong US spot ETF demand runs into profit-taking from short-term holders.
That has left the market pulled in two directions. Exchange Traded Fund (ETF) buyers are taking in supply and helping keep prices steady, while recent holders are using the rebound to sell into strength.
ETFs Keep Drawing Fresh Demand
US spot Bitcoin ETFs have continued to pull in fresh money. SoSoValue data showed eight straight days of net inflows totaling about $2.1 billion through April 23. That helped support Bitcoin after its rebound from lower levels earlier this month.
Farside Investors data also showed positive flows this week, including $238.4 million on April 20 and more inflows on April 21 and April 23. BlackRock’s IBIT remained the main source of buying in several recent sessions, reinforcing the view that institutional demand is still there.
Short-Term Holders Add Supply
Recent buyers are holding Bitcoin back by taking profits. ETF inflows are tightening available supply, but short-term holder selling is making each move higher harder to maintain.
Earlier this month, short-term holders sent about 65,000 BTC to exchanges as Bitcoin hit key levels, mostly from coins that had become profitable.
The $80,000 Area Remains the Key Test
Bitcoin briefly pushed toward the $78,000 to $80,000 zone this week, but that range has become the near-term hurdle for bulls. Bitcoin reached an intraday high of $79,468 and later traded near $78,600, with analysts watching resistance between $78,000 and $80,000.
A clean move above that range would suggest demand is absorbing near-term selling pressure. If momentum fades again, Bitcoin could stay stuck in consolidation, especially if short-term holders keep selling into every push higher.
Market Needs ETF Demand to Outrun Holder Selling
For now, the rally has not broken lower. ETF demand is still firm, exchange balances remain tight and institutional interest has improved after a weaker start to the month.
But the next move depends on whether fresh demand can outrun short-term selling. If ETF inflows keep coming and profit-taking eases, Bitcoin could test $80,000 again with more strength. If ETF inflows slow, the same holder selling that capped this move could keep Bitcoin stuck in consolidation.
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Fhumulani Lukoto
Cryptocurrency Journalist
Fhumulani Lukoto holds a Bachelors Degree in Journalism enabling her to become the writer she is today. Her passion for cryptocurrency and bitcoin started in 2021 when she began producing content in the space. A naturally inquisitive person, she dove head first into all things crypto to gain the huge wealth of knowledge she has today. Based out of Gauteng, South Africa, Fhumulani is a core member of the content team at Coin Insider.