Bitcoin climbed to around $81,025 on May 5, gaining 1.56% in the latest trading session as buyers defended the $80,000 level and pushed the market toward a major resistance zone.
The move came after renewed demand through U.S. spot Bitcoin ETFs and improving market sentiment, placing Bitcoin back near a critical technical level that traders have been watching closely.
Analyst Says Weekly MACD Signal Could Point Higher
Crypto analyst Ali Martinez noted that Bitcoin’s bullish weekly MACD crossover, which appeared on April 13, has already coincided with a 15% rally.
According to Martinez, similar MACD crossovers have historically preceded major upside moves for Bitcoin, including:
- 147% rally after October 2023 crossover
- 75% rally after October 2024 crossover
- 35% rally after May 2025 crossover
He believes Bitcoin now faces its next major test near the $83,000 level, where the 200-day simple moving average currently sits.
A successful daily close above that zone could clear the way for a move toward $89,000, with $94,000 emerging as the next upside target.
ETF Inflows Continue Supporting Bitcoin Demand
Institutional demand remains a major driver behind Bitcoin’s recent strength.
Data from SoSoValue shows U.S. spot Bitcoin ETFs recorded:
- $532 million in net inflows on May 4
- $630 million in net inflows on May 1
That brings total inflows over the two sessions to approximately $1.16 billion.
Strong ETF demand suggests many investors continue gaining exposure through regulated financial products rather than direct on-chain purchases.
Whale Buying Adds Further Strength
Large holders also stepped in during the rally.
Ali Charts reported that Bitcoin whales accumulated 4,527 BTC over 24 hours — worth roughly $362 million at current prices.
At the same time, Bitcoin’s market dominance climbed above 60%, showing capital remains concentrated in BTC rather than rotating heavily into altcoins.
On-Chain Activity Remains Surprisingly Weak
Despite the rally, blockchain activity paints a more cautious picture.
Data from Santiment shows Bitcoin’s on-chain activity has dropped to its lowest level in two years, even as price reclaimed $80,000.
Current metrics show:
- Around 531,000 daily active wallets
- Roughly 203,000 new wallets created per day
This suggests the rally is being driven more by institutional flows, whales, and derivatives activity than by broad retail participation.
Short Liquidations Help Fuel the Breakout
Bitcoin’s move higher also triggered heavy short liquidations.
Roughly $270 million in bearish positions were wiped out as BTC surged, adding extra buying pressure to the market.
Meanwhile, improved miner profitability has reduced immediate sell pressure, with daily mining revenue per petahash reaching its highest level since late January.
Macro Developments Add to Market Focus
Broader macro conditions also influenced sentiment after the U.S. launched Project Freedom to secure shipping routes through the Strait of Hormuz following heightened geopolitical tensions.
Because the region remains vital to global oil flows, traders continue monitoring macro headlines closely for their impact on risk assets like Bitcoin.
Outlook Remains Bullish—But Resistance Looms
Bitcoin’s technical structure remains constructive as long as it holds above $80,000.
However, the $83,000 resistance zone remains the key level bulls must reclaim before a sustained move toward $89,000 becomes more likely.
If buyers fail to break that level decisively, Bitcoin could face another consolidation phase before attempting its next breakout.
