Bitcoin’s price dipped under the $80,000 mark following a surge in profit-taking and renewed uncertainty in US-Iran negotiations. After climbing as high as $81,705 in the morning, Bitcoin reversed course, dropping nearly $2,000 from its daily peak. At the time of writing, Bitcoin was trading around $79,840, reflecting a 1.76 percent decline over the past 24 hours.
Geopolitical tensions shake markets
A key driver behind Bitcoin’s retreat was the statement from Iranian official Mohsen Rezaei. He announced that Iran would reject the US proposal to reopen the Strait of Hormuz unless demands for war reparations were addressed. Rezaei criticized the US offer as unrealistic and made it clear they wouldn’t accept mere symbolic concessions. Developments concerning the Strait of Hormuz, a crucial route for global oil trade, continue to weigh heavily on both energy prices and risk assets.
The fragile ceasefire talks between the US and Iran reportedly involve provisions such as a 12- to 15-year pause in Iran’s uranium enrichment, partial sanctions relief, and the reopening of the strait. Tehran, in turn, has called for broader sanctions relief, compensation for damages, and recognition of its control over the passage.
The US, however, categorically rejected any arrangement requiring ships in international waters to pay Iran. Secretary of State Marco Rubio underlined that Washington would not agree to any transit fee system for the Strait of Hormuz.
Ongoing diplomatic uncertainty and the lack of positive news from negotiations have caused some of the previous gains in Bitcoin and other risk assets to evaporate.
Market sentiment took another hit after US President Donald Trump warned of intensified bombing should a final deal remain elusive.
Profit-taking drives technical correction
The decline in Bitcoin wasn’t driven solely by geopolitics. On-chain data shows significant profit-taking as prices have rallied sharply since the start of the year. CryptoQuant figures reveal Bitcoin has surged roughly 37 percent since early April, touching a three-month high. On May 4, realized daily profits reached 14,600 BTC, a record not seen since December 2025. The Short-Term Holder SOPR reached 1.016, indicating many recent investors are locking in gains.
Looking at 30-day averages, Bitcoin investors have been in net profit territory for the first time in months. In February and March, net losses fell as low as 398,000 BTC, but this trend has shifted to net profits in recent weeks.
Despite a lack of sustained spot selling and strong interest in perpetual futures, analysts caution that increased volatility may follow these rounds of profit-taking. The unrealized profit margin stands at 18 percent, the highest level since June 2025.
Key support and resistance to watch
Technical analysis points to Bitcoin consolidating near a short-term decision zone. Analyst Ali Martinez highlighted key liquidity pools concentrated at $75,000, $73,000, and $70,000. Should selling pressure ease between $80,000 and $84,000, the $73,000 to $74,000 range may serve as a crucial higher-low support for potential renewed upside.
Meanwhile, Bitcoin currently trades just below its 200-day exponential moving average at $82,162, which now acts as resistance. Analyst Michaël van de Poppe commented that Bitcoin may be undergoing a brief correction phase, noting that while asset prices move in waves, the prevailing trend remains intact despite short-term pullbacks.
With investors eyeing the next move, resistance at $86,500 stands out as a key level. Clearing this barrier could set the stage for a rally toward the $90,000 to $92,000 range. According to CryptoAppsy, Bitcoin was trading at approximately $79,840 at the time of reporting.
