Profit-Taking Stalls Crypto Momentum—But Not for Long

• Bullish momentum fades due to spot market selling
• Short-term holders are locking in profits at key levels
• Trend may resume once selling pressure eases

Futures Market Loses Steam After April 21 Surge

Over the past three days, the crypto futures market has shown a noticeable lack of bullish momentum compared to the surge seen on April 21. While open interest and funding rates suggest some activity, the spark needed to drive prices higher is missing—for now.

The reason? It lies in the spot market, where a wave of short-term holders (STHs) are taking profits at their realized price level. This behavior is not unusual after a strong rally, as many traders look to secure gains once key thresholds are reached.

Spot Market Selling Creates Temporary Resistance

The STH realized price—essentially the average price paid by short-term holders—has become a battleground. As prices approach this level, many holders choose to sell, creating a wall of resistance that dampens further upside.

This trend is reflected in on-chain metrics, which show increased exchange inflows and a slowdown in accumulation. The good news? This kind of profit-taking is usually short-lived. Once selling pressure fades and those eager to offload at breakeven levels are done, the market typically regains strength.

Rally Still on the Horizon

Despite the short-term stall, there’s optimism that the uptrend will resume. With key macro indicators still leaning favorable and long-term investor sentiment strong, the current cooldown may be more of a reset than a reversal.

As the profit-taking pressure eases and the spot market stabilizes, the path appears clear for another leg up—potentially surpassing the highs of April 21.

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