Bitcoin (BTC) Price: Long-Term Holders Gobble Up Supply as Weak Hands Fold

Bitcoin's proving once again why it eats weak hands for breakfast.

The Accumulation Game

While paper-handed traders panic-sell at the first sign of turbulence, OGs are loading their bags. Chain data shows long-term holders now control the highest percentage of circulating supply since the 2021 bull run—back when your Uber driver was explaining Satoshi's whitepaper between rides.

Market Darwinism at Work

Every dip gets bought faster than a Wall Street banker's 'we're bullish on blockchain' LinkedIn post. Retail exits stage left, institutions enter stage right—with actual nine-figure checks this time, not just PowerPoint slides about 'digital transformation.'

The Cynic's Corner

Meanwhile, traditional finance still can't decide if crypto's a scam or the greatest wealth generator since compound interest. Pro tip: Follow the money—not the hot takes from guys who think 'HODL' is a typo.

TLDR

• Bitcoin dipped to $104k twice but recovered to $104.6k, testing crucial $100k support levels
• Short-term holders sold 15,000 BTC at a loss this week, showing “weak hands” panic selling behavior
• Long-term holders continue accumulating Bitcoin despite market cooling, providing price stability
• Heat Phase Index at 0.41 indicates normal market activity but warns of potential extended cooling if it drops below 0.39
• Support levels between $97,000-$94,000 could serve as local bottom if price breaks below $100k

Bitcoin is experiencing a cooling period as the cryptocurrency tests key support levels around $100,000. The world’s largest digital asset has faced selling pressure from short-term holders while maintaining stability above crucial price floors.

Over the past 24 hours, Bitcoin dipped to $104,000 twice before recovering to trade at $104,600 at press time. This price action reflects ongoing volatility as the market navigates geopolitical tensions and institutional pressure.

Short-term holders have been active sellers during this period. Data from CryptoQuant shows that over 15,000 BTC held by these investors moved at a loss throughout the week.

The selling began Monday with 959 BTC transferred to exchanges at a loss. This number surged to 16,700 BTC by Wednesday, coinciding with Bitcoin’s drop from $106,500 to $103,500.

This behavior follows a familiar pattern where short-term holders, often called “weak hands,” tend to panic-sell during price downturns. These investors frequently realize losses during market dips.

Long-Term Holders Provide Market Stability

While short-term holders have been selling, long-term holders continue to accumulate Bitcoin. This dynamic has helped maintain the cryptocurrency’s price above the $100,000 mark.

The overall supply held by short-term holders has declined following recent drawdowns. This reduction in weak-hand selling pressure creates opportunities for accumulation and may indicate the emergence of a price floor.

Long-term holder accumulation patterns show continued confidence in Bitcoin’s prospects. The spot taker cumulative volume delta for the past 90 days reveals that taker buy volume remains dominant, suggesting bulls maintain hope for recovery.

ETF inflows have also provided support during this period. Strong institutional demand through exchange-traded funds has given bulls reason for Optimism despite the cooling market conditions.

Technical Indicators Signal Cooling Phase

The bitcoin Heat Macro Phase Index currently reads 0.41, indicating normal levels of market activity and demand resumption. This metric combines four key signals including the normalized MVRV Z-score and ETF flow data.

The index peaked at 0.45 on May 22 when Bitcoin reached its high of $111,000. It cooled to 0.39 by June 5 during an accumulation phase around $101,000.

If the Heat index falls below 0.39 in coming days, it WOULD signal an extended cooling phase. A Bitcoin drop below $100,000 combined with this reading would indicate the market has entered a corrective phase rather than just cooling.

Technical analysis suggests potential support levels between $97,000 and $94,000 if Bitcoin breaks below current levels. This range could serve as a local bottom, testing fair value gaps and daily order blocks.

Market analysts note that Bitcoin is currently in a “blind spot” with persistent negative spot volume delta since June. This signals selling pressure despite recent price rebounds driven by low buying volume.

The geopolitical situation involving tensions in the Middle East has contributed to market uncertainty. Armed conflict between Israel and Iran, along with uncertainty ahead of Federal Reserve meetings, has led investors to remain cautious.

Despite these headwinds, Bitcoin has not been significantly moved by Middle East developments over recent days after an initial bearish reaction. The cryptocurrency’s resilience above $100,000 suggests underlying strength in the market structure.

Current onchain data indicates that most short-term holder selling has been absorbed by long-term holders, a dynamic that supports price stability above key psychological levels.