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

Bitcoin's surge towards $75,000 is encountering significant supply, even as institutional demand remains steady. The recent price increase has been driven primarily by macroeconomic factors rather than speculative activity, with US-listed spot bitcoin ETFs attracting consistent inflows. This demand has helped lift bitcoin from around $71,000 to the mid-$70,000s, despite rising oil prices and shifting interest rate expectations. However, as bitcoin approaches a key cost-basis level for short-term holders, around $76,800, supply is beginning to emerge more aggressively. This level has historically acted as resistance, as investors who were previously at a loss use rallies to exit at breakeven. On-chain data shows that bitcoin exchange inflows have spiked, and the average deposit size has increased, suggesting that larger holders are driving the move. This sets up a two-sided market, with ETF flows and macro tailwinds providing demand, while large holders appear to be using the rally to reduce exposure. The outcome depends on whether the new holders will hold onto their coins or sell, which will determine whether the market can sustain its gains or will experience a pullback.