Bitcoin Surges Past $77,000 Amid Profit-Taking Concerns Ahead of US Inflation Data Release

Bitcoin Prices Rise Amid Profit-Taking Pressure

Bitcoin prices surged to $77,130 (11:33 IST) on May 1, but analysts fear that the world's largest cryptocurrency faces profit-taking pressure due to looming US inflation data. High oil prices and rising bond yields are weighing on risk assets, causing uncertainty in the market.

Bitcoin has hit a key long-term resistance zone, where momentum is starting to fade. Price action has shifted to consolidation with early signs of weakness, making the next support test crucial. On a broader horizon, Bitcoin is hovering near $76.5K after being rejected from the $79K-$80K resistance zone. This pullback has softened short-term momentum, but the broader trend remains intact. The $74.7K-$75K support area is crucial; losing it could open the door to $73.8-$73.3K. For bulls to regain control, price needs to push back above $78.8K-$79.5K.

Other major cryptocurrencies followed the cue, with the top gainers for the day being SKYAI, up 30%, followed by Terra Classic, up 7%, and Zcash, up 6%. Meanwhile, MemeCore plunged by 6%, Siren by 5.16%, and DeXe, World Liberty Financial, by 4% each.

Read also: Bitcoin Price Sinks 6% Below $66,500 Amid ETF Outflows and Institutional Selling

Comparison of Major Cryptocurrencies Over the Past 24 Hours

CoinDCX, citing on-chain data, noted that Dogecoin whales have hit a 6-month high in activity, with 739 transfers of $100K+ in a single day. Another potential exploit was detected, and this time it's Ethereum. Hundreds of wallets, many inactive for more than 7 years, were just drained by the same address on the Ethereum mainnet. In the meantime, Tom Lee's BitMine staked another 162,088 ETH, bringing the total staked to 4,194,029 ETH. The government of Bhutan continues to sell Bitcoin, with the latest sale totaling $287 million. OnChain agencies predict the country may run out of its BTC reserves by October 2026, at the current pace.

According to WazirX, Bitcoin's current price trajectory signals a mild bullish trend as moving averages indicate buying strength, while neutral oscillators suggest steady momentum and stable market conditions. Liquidity trends are also supporting the market, with a reversal in USDT flows helping stabilize Bitcoin prices, reflecting improved balance between supply and demand conditions.

Read also: Bitcoin's Inflation-Hedging Potential Erodes as Price Falls Below $70,000