Bitcoin has surged past the 80,000 dollar level for the first time in three months. However, underlying data suggests the rally may not be as strong as it appears, with weak on chain activity pointing to limited buying support.
This imbalance raises concerns that the asset could become vulnerable if investors begin taking profits without enough new demand entering the market to sustain the upward move.
Breakout Momentum or Market Setup
Crypto analyst Doctor Profit believes Bitcoin may be approaching the final phase of a bull trap. In his view, the current strength could be temporary and might precede a sharper decline.
He argues that the market is nearing a turning point where selling pressure could return aggressively, potentially driving BTC to lower levels once this phase concludes. Despite this outlook, he is still maintaining a long position opened near 71,000 dollars, expecting a short term rise toward the 83,000 to 85,000 dollar range before a reversal. His strategy involves taking profits on the long position and then shifting toward short positions.
Meanwhile, data from Santiment highlights a noticeable disconnect between Bitcoin’s price and actual network usage. Even as the asset climbs, overall activity on the network has declined.
Daily active wallets have dropped to about 531,000, while new wallet creation stands near 203,000 per day, both hovering close to two year lows. Typically, a strong rally is supported by rising participation, with more users entering the market and transaction volumes increasing.
In this case, price is rising without a corresponding increase in user activity. Santiment suggests there is less buying momentum behind the move, implying that a smaller group of participants, likely large holders, is driving the rally rather than widespread retail involvement.
Bitcoin has gained roughly 22 percent over the past five weeks, but without growth in active addresses or new wallets, the rally lacks fresh demand. If major players begin to sell, there may not be enough buyers to absorb the pressure, increasing the risk of a pullback.
Low Activity Could Signal Opportunity
At the same time, Santiment notes that periods of weak activity do not always signal prolonged weakness. Historically, such conditions often appear when market interest is at its lowest.
If Bitcoin is already approaching 80,000 dollars with limited participation, a future increase in activity, such as more wallets and higher transaction volume, could amplify price movements, especially if participation returns to levels seen during the 2024 to 2025 peaks.
From a technical perspective, analyst Ali Martinez has identified a bullish signal on Bitcoin’s weekly chart that is already unfolding. A MACD crossover confirmed on April 13 has led to an increase of nearly 15 percent so far, and similar patterns in the past have resulted in extended rallies.
Martinez pointed out that previous crossovers in October 2023 and October 2024 triggered gains of 147 percent and 75 percent, while another in May 2025 produced a 35 percent rise. He also emphasized that Bitcoin’s 200 day moving average, currently near 83,000 dollars, remains a key level. A sustained move above it could open the door to further upside in the market.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
