Bitcoin (BTC) is trying to regain the $110,000 level after a sharp downward move put pressure on markets and caused renewed volatility in the crypto landscape. While this pullback was uncomfortable for short-term traders, it remains modest compared to the October 10 liquidation crash, which wiped out excessive debt and marked one of the most aggressive selloffs of the year.
Despite the short-term turbulence, Bitcoin remains within its broader consolidation range – but the market is now entering a critical phase where direction must be determined quickly. In the coming weeks, macro developments, liquidity flows and investor positioning will likely determine whether the next impulse will be upward or downward.
New data from CryptoQuant shows that long-term holders (LTHs) have been steadily distributing coins since July 1 and selling off with strength as BTC approached and later tested all-time highs. This excess supply has contributed to moderate upside momentum, even as demand has proven strong enough to absorb much of the selling.
The Bitcoin market is still absorbing supply
According to analyst Axel Adler, Bitcoin continues to navigate a complex supply and demand landscape environment defined by steady profit taking from long-term holders (LTHs). Since July 1, LTHs have distributed approximately 810,000 BTC, reducing their total holdings from 15.5 million to 14.6 million BTC.
This represents one of the most important distribution phases in the current cycle – a clear indication that seasoned holders have locked in their profits after years of accumulation and strategic positioning.
What makes this dynamic particularly striking is that Bitcoin has printed new all-time highs twice during this distribution phase, demonstrating that market demand has remained robust enough to absorb the significant supply being drained.
Historically, similar phases of distribution by long-term holders have often been associated with major inflection points in the cycle, as capital shifts from early investors to new participants entering the market.
Adler emphasizes that while this absorption reflects the market’s strength, it also puts a ceiling on aggressive upward momentum. As long as long-term investors continue to make profits, the path to the upside is likely to remain gradual and choppy rather than explosively parabolic. Strong demand is supporting prices and preventing deeper corrections – but at the same time supply pressure is preventing a sustained acceleration of the outbreak.
The conclusion is clear: there is no lack of demand for Bitcoin; supply kicks in once distribution slows in the long term – whether due to depletion or macroeconomic strengthening – the upside potential could increase significantly. Until then, price action may continue sideways, with upward attempts encountering resistance as supply moves to new owners.
Bitcoin remains above the key MA
Bitcoin (BTC) is trading around $109,900 and trying to stabilize after a recent downward move pushed the price back towards the 200-day moving average (red line) – a key long-term support level currently near $108,000.
This region has become a key line of defense for bulls and structures the lower bound of Bitcoin’s consolidation range. Every time BTC approached this zone over the past month, buyers stepped in, signaling continued demand despite short-term weakness.
However, regaining momentum remains a challenge. BTC continues to struggle below the 50-day (blue) and 100-day (green) moving averages, which have converged overhead and now act as layered resistance between $112,000 and $114,000.
A sustained break above this cluster is needed to restore bullish momentum and make another attempt towards the resistance at $117,500 – the key checkpoint of the cycle and the level that has repeatedly capped upside moves since the summer.
If Bitcoin loses the $108,000 support, a deeper correction towards $105,000-$103,000 becomes likely, given liquidity and previous reaction levels. For now, the technical picture remains neutral to cautious: bulls retain key support, but the burden remains on buyers to regain lost moving averages and flip the market structure back in their favor.
Featured image of ChatGPT, chart from TradingView.com
Editing process for bitcoinist is focused on providing thoroughly researched, accurate, and unbiased content. We have strict sourcing standards and every page is carefully reviewed by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.
#Bitcoin #Levels #LTH #Distribution #Hits #Coins #Demand #Absorbs #Supply #Bitcoinist.com