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

The surge in bitcoin's price towards $75,000 is being met with a significant supply of coins, even as institutional demand remains steady. The recent price increase has been primarily driven by macroeconomic factors rather than speculative activity. US-based spot bitcoin ETFs have seen consistent inflows, including a notable $240 million influx following geopolitical tensions in the Middle East. However, as bitcoin's price rises, the market dynamics are shifting. On-chain data suggests that supply is increasing as prices approach a key cost-basis level for short-term holders, around $76,800, which has historically acted as resistance. CryptoQuant notes that bitcoin exchange inflows have spiked, and the average deposit size has increased, indicating that larger holders are driving the move and potentially feeding liquidity into the market as prices approach the breakeven zone. This sets up a two-sided market, with ETF flows and macro tailwinds providing demand, while large holders appear to be reducing exposure, leading to a potential handoff between long-term holders and new buyers. The outcome depends on whether the new holders will hold onto their coins or sell, and the market may struggle to sustain gains if supply continues to build.