As of May 6, 2025, Bitcoin is trading around $94,600, marking a noticeable drop from its recent highs of over $97,000. The crypto community is buzzing with one burning question: Why is Bitcoin dropping despite strong momentum earlier this year? Let’s break down the current market conditions and the key reasons behind this selling pressure.

## 1. Profit-Taking at the $99,900 Psychological Level

According to data from Glassnode, long-term holders (LTHs) – those who have held Bitcoin for over 155 days – typically sell when their profits reach around 350%. For many, this target lies near $99,900. As BTC approached this level, a wave of profit-taking was triggered, creating downward pressure on the price.

## 2. Capital Outflows from ETFs

On May 6, Fidelity's Bitcoin EF reported a $57.8 million net outflow, signaling a bearish mood among institutional investors. Other ETF providers also reported similar trends. When major institutions begin pulling money out of BTC funds, it sends a negative signal across the market and leads to increased retail panic selling.

## 3. Break-Even Exits by Recent Buyers

Many investors who bought Bitcoin in the $95,000–$98,000 range are now exiting as prices hover around their entry levels. Rather than risk a loss, they are choosing to sell at break-even. This kind of behavior adds another layer of short-term selling pressure, often referred to as “panic breakeven selling.”

## 4. Strong Resistance at $96K–$100K

The $96,000–$100,000 zone has become a historically strong resistance area. Sellers are heavily active here, making it difficult for BTC to break through. Every time the price approaches this region, it triggers more sell orders, pushing the price back down.

## 5. Fear-Driven Market Sentiment

The Crypto Fear & Greed Index is currently showing signs of elevated fear in the market. This emotional state causes investors to act irrationally, often selling prematurely just to avoid potential losses. As fear spreads, so does the selling pressure, creating a domino effect.

## Conclusion

Bitcoin’s price drop on May 6, 2025, is the result of multiple overlapping factors:

- Strategic profit-taking by long-term holders

- Heavy outflows from institutional ETFs

- Resistance at critical price levels

- Break-even exits by short-term buyers

- And an overall fear-driven sentiment

While long-term fundamentals remain intact, the short-term outlook shows that Bitcoin could remain under pressure until it clearly breaks above the $100,000 resistance. Until then, caution and strategic entry remain key for traders and investors alike.