Bitcoin Faces Resistance at Key Level as Large Holders Prepare to Sell

Bitcoin's surge towards $75,000 is encountering significant selling pressure, driven by institutional inflows rather than speculative activity. U.S.-based spot bitcoin ETFs have seen steady inflows, including a sizable $240 million injection following Middle East geopolitical tensions, as reported by market maker Enflux. This demand has propelled BTC from around $71,000 to the mid-$70,000s, despite rising oil prices and shifting interest rate expectations in traditional markets. The pattern suggests investors are allocating assets rather than chasing momentum. However, as bitcoin approaches a key level, the market dynamics are shifting. On-chain data reveals that supply is increasing as prices near a critical cost-basis level for short-term holders, around $76,800, which has historically acted as resistance. CryptoQuant notes that bitcoin exchange inflows surged to approximately 11,000 BTC per hour, the highest since late December, as prices tested the $75,000 to $76,000 range. The average deposit size also rose to about 2.25 BTC, the highest daily reading since mid-2024, indicating larger holders are driving the move. This sets up a two-sided market, with ETF flows and macro tailwinds providing steady demand, while large holders appear to be reducing exposure, feeding liquidity into the market as prices approach the breakeven zone. The result is a market that can quickly move higher on inflows but struggles to sustain gains as supply builds. A sustained break above the mid-$70,000s would likely require demand to absorb a growing wave of sell pressure.