Bitcoin’s structure tightened as selling pressure subsided and institutional demand concentrated.
The OTC stock rose to 82.26%, indicating that most activity has moved away from the exchanges. Major players seemed to absorb the supply with minimal slippage. Meanwhile, only 17.14% of the flow remained on the exchanges, while Coinbase accounted for 58.21%.
At the same time, there are long-term holders [LTHs] remained inactive. Only 94.68 BTC of older coins were moved to exchanges, despite a settlement volume of 706,000 BTC.
This creates a clear imbalance. With supply locked in and demand concentrated, Bitcoin [BTC] approached $72,000 under heightened conditions.
If demand continues, the price could quickly reprice. However, weak inflows could slow momentum near resistance.
Why is the selling pressure decreasing?
As institutional flows tightened supply, the sell side began to lose momentum.
Previously, realized losses rose to $400 million per day, due to forced exits. This trend subsided, indicating that most of the weak hands had already disappeared.
This shift changed market behavior. As losses decreased, the realized profit/loss ratio moved towards 1, indicating more balanced positioning.
Fewer traders felt the pressure to sell, reducing the downside force. Yet demand must still remain consistent to sustain an upward move.
Where is BTC likely to encounter resistance?
As supply tightened, the price approached the $73,000-$74,000 zone.
The Liquidation Heatmap showed dense liquidity clusters above this range. These levels often act as price targets because liquidation zones bring volatility.
However, the recent $71,000 rejection highlighted weak follow-through. The price took advantage of liquidity in the area, caused liquidations and then reversed due to limited demand in the spot market.
That setup leaves a clear trigger. A sustained move above $73,000 could accelerate the price into thinner liquidity. If it fails to break higher, BTC may remain range bound.
Bitcoin’s shrinking losses and rising OTC activity tightened supply. Still, $73,000 remains the key level for a directional move.
Final summary
- Bitcoin supply shrinks as OTC dominance rises above 82%, while realized losses decline, leaving the price sensitive to even modest shifts in demand.
- Bitcoin faces a key test near $73,000, where sustained demand in the spot market could trigger a breakout while weak follow-through keeps the price in range.