Bitcoin Flatlines As LTH Distribution Hits 810K Coins: Demand Still Absorbing Supply

Bitcoin (BTC) is attempting to reclaim the $110,000 level after a sharp downside move pressured markets and triggered renewed volatility across the crypto ￰0￱ this pullback has been uncomfortable for short-term traders, it remains modest compared to the October 10 liquidation crash, which forced out excessive leverage and marked one of the most aggressive sell-offs of the ￰1￱ the short-term turbulence, Bitcoin remains within its broader consolidation range — but the market now enters a critical phase where direction must soon ￰2￱ the coming weeks, macro developments, liquidity flows, and investor positioning will likely determine whether the next impulse is upward or ￰3￱ CryptoQuant data shows that since July 1, long-term holders (LTHs) have been steadily distributing coins, selling into strength as BTC approached and later tested all-time ￰4￱ supply overhang has contributed to muted upside momentum, even as demand has proven strong enough to absorb much of the ￰5￱ Market Still Absorbs Supply According to analyst Axel Adler, Bitcoin continues to navigate a complex supply-demand environment defined by steady profit-taking from long-term holders (LTHs).

Since July 1, LTHs have distributed roughly 810,000 BTC, reducing their total holdings from 15.5 million to 14.6 million ￰6￱ represents one of the most significant distribution phases in the current cycle — a clear indication that seasoned holders have been locking in profits after years of accumulation and strategic ￰7￱ 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 substantial supply being offloaded. Historically, similar phases of distribution from long-term holders often accompany major cycle inflection points, as capital shifts from early investors to new participants entering the ￰8￱ emphasizes that while this absorption reflects market strength, it also sets a ceiling on aggressive upside ￰9￱ long as long-term holders continue to realize profits, the path higher is likely to remain gradual and choppy rather than explosively ￰10￱ demand is supporting prices and preventing deeper corrections — but supply pressure is simultaneously preventing sustained breakout ￰11￱ takeaway is clear: Bitcoin is not lacking demand; it is working through supply once long-term distribution slows — whether due to exhaustion or macro reinforcement — upside potential could expand ￰12￱ then, price action may continue to grind sideways with upside attempts meeting resistance as supply transitions to new ￰13￱ Holds Above Key MA Bitcoin (BTC) is trading around $109,900, attempting to stabilize after a recent downside move pushed price back toward the 200-day moving average (red line) — a key long-term support level that currently sits near $108,000.

This region has become an important defense line for bulls, structuring the lower boundary of Bitcoin’s consolidation ￰14￱ time BTC has approached this zone over the past month, buyers have stepped in, signaling continued demand despite short-term weakness. However, reclaiming momentum remains a ￰15￱ 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 required to re-establish bullish momentum and set up another attempt toward the $117,500 resistance — the cycle’s key Point of Control and the level that has repeatedly capped upside moves since ￰16￱ Bitcoin loses the $108,000 support, a deeper correction toward $105,000–$103,000 becomes likely, where liquidity and previous reaction levels ￰17￱ now, the technical picture remains neutral-to-cautious: bulls are holding essential support, but the burden remains on buyers to reclaim lost moving averages and flip market structure back in their ￰18￱ image from ChatGPT, chart from ￰19￱