Bitcoin has climbed above a key price zone that analysts had identified as a major hurdle — and the move is drawing new attention to who actually owns the coin.
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Long-term holders absorb more supply
About 830,000 BTC have left short-term traders’ portfolios in recent months, leaving the stock of Bitcoin held by long-term addresses up to 78%, compared to 74% in the previous cycle.
Facts from on-chain tracking account Alpharactal shows the shift is one of the largest recorded in recent memory. As more supply is locked up in long-term portfolios, the amount available for active trading continues to shrink.
That tighter supply tends to work in favor of prices during periods of steady demand. When there are fewer coins in circulation, selling pressure tends to be weaker during price declines.
Reports indicate that long-term holders have consistently absorbed supply relative to price movements, contributing to lower liquidity in the market.
% 𝗼𝗳 𝗕𝗧𝗖 𝘀𝘂𝗽𝗽𝗹𝘆 𝗶𝘀 𝗻𝗼𝘄 𝗳𝗿𝗼𝘇𝗲𝗻 𝗶𝗻 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝗵𝗮𝗻𝗱𝘀. 𝗨𝗽 𝗳𝗿𝗼𝗺 𝟳𝟰.𝟭%.
That 4.2 percentage point shift = approximately 830,000 BTC migrated from short-term to long-term cohort over the cycle. STH Conviction Crumbles, LTH Conviction… pic.twitter.com/aL8pTSk3Js
— Alphractal (@Alphractal) May 9, 2026
Prize structure indicates a high stakes range
Bitcoin recently broke through a resistance zone between $78,000 and $80,000 – a range that had acted as a bearish block.
According to one analyst, that zone has now turned to support, and the next positive target is at $90,000. But the setup carries risks on both sides.
If that newly established support level does not hold, a pullback to $68,000 – and possibly even $60,000 – becomes a real possibility.
Reports note that tighter liquidity zones increase the likelihood of sharp moves at key price levels, making the $78,000 area especially critical for the near-term price.
According to the same analysis, a rejection of $82,000 could also be enough to turn momentum back towards the bears.
A higher time frame still shows caution
If you zoom out, the image is less clear. Bitcoin remains in a corrective phase after reaching an all-time high of $120,000, with lower highs and lower lows forming despite brief rallies.
The price is still trading below resistance at $97,000, a level that analysts say needs to be recovered to signal a stronger trend shift.
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Two major supply zones between $79,000 and $94,000 remain overhead, acting as a ceiling for the current rally. A support channel has formed since prices bounced from around $59,000.
The data points to a market where long-term conviction is increasing, but short-term price uncertainty remains. Whether buyers can maintain the ground gains will likely determine the next key move.
Featured image from Unsplash, chart from TradingView