Bitcoin, 830,000 BTC Vanish from Short-Term Wallets...Crossroads of $90,000 vs $60,000

▲ Bitcoin (BTC)

Approximately 80% of Bitcoin (BTC) supply is locked in long-term holder addresses. A large volume of Bitcoin has moved out of short-term trader wallets into long-term holding addresses, reducing the market's circulating supply. This has emerged as a variable that will determine Bitcoin's future direction after it breaks through key resistance levels.

NewsBTC reported on May 10 (local time), citing data from on-chain tracking account Alphractal, that approximately 830,000 BTC have moved out of short-term trader wallets in recent months. Consequently, the proportion of Bitcoin held by long-term holding addresses has risen from 74% in the previous cycle to 78%. Alphractal described this change as one of the largest supply shifts recorded recently.

When supply moves to long-term holding addresses, the amount of Bitcoin immediately available for trading in the market decreases. NewsBTC stated that as more supply becomes locked in long-term wallets, the volume available for active buying and selling continues to decline. In an environment where demand remains constant, a reduction in circulating supply can be favorable for prices, and selling pressure during price corrections may also be relatively weaker.

However, supply locking does not immediately guarantee a short-term upward trend. Bitcoin recently broke through a resistance zone between $78,000 and $80,000, and this zone has now turned from a previous bearish block into a support level. One analyst projected that if this support level holds, the next upward target would be $90,000. However, if this support level breaks, Bitcoin could fall back to $68,000, or even lower to $60,000.

NewsBTC reported that a narrowed liquidity range increases the possibility of sharp movements at key price levels. The area around $78,000, in particular, was identified as a critical zone for determining short-term direction. Furthermore, an analysis suggested that if rejection occurs at $82,000, momentum could shift back towards bearishness. As of the time of writing, Bitcoin was trading at $80,920.

On higher time frames, caution still prevails. Bitcoin remains in a correction phase after reaching an all-time high of $120,000, forming lower highs and lower lows even with short rebounds. Analysis suggests that to create a strong trend reversal signal, the $97,000 resistance level must be reclaimed.

Two key supply zones between $79,000 and $94,000 still sit above Bitcoin. These are acting as a ceiling limiting the upside of the current rebound. Conversely, a support channel has also formed since the rebound from around $59,000. NewsBTC stated that while long-term holders' conviction is growing, the short-term direction remains unstable, and whether buying pressure can maintain the secured price levels will determine the next big move.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*