Bitcoin Faces Resistance as Large Holders Prepare to Sell

The bitcoin rally towards $75,000 is encountering significant selling pressure, driven by institutional demand rather than speculative activity. U.S.-listed spot bitcoin ETFs have seen steady inflows, including a $240 million influx following Middle East geopolitical tensions, which helped drive BTC from $71,000 to the mid-$70,000s despite rising oil prices and shifting rate expectations. However, as bitcoin approaches $76,800, the average entry point for recent buyers, supply is emerging more aggressively. This level has historically acted as resistance, with investors using rallies to exit at breakeven. CryptoQuant notes that bitcoin exchange inflows have spiked to 11,000 BTC per hour, with larger holders driving the move, suggesting increased distribution pressure. The market is becoming two-sided, with ETF flows and macro tailwinds providing demand, while large holders reduce exposure, feeding liquidity into the market as prices approach the breakeven zone. The outcome depends on whether new holders will hold onto their coins, and the market may struggle to sustain gains as supply builds, potentially leading to a pullback towards the low-$70,000s.