Bitcoin – A look at whether BTC holders are positioning for something bigger

Bitcoin’s long-term holders are reducing sell pressure with clear data confirmation, with the LTH Distribution Pressure Index flashing a reading of -1.628. This places it deep within the accumulation zone. 

At the same time, the average daily LTH spending has dropped to 221 BTC – One of the lowest readings in recent months. That’s not all either, with the SOPR having a reading of 1.13 – Confirmation that long-term holders are still transacting at a profit. 

However, they may be choosing not to distribute aggressively. With Bitcoin trading at close to $89k on the charts, such a restraint limits the circulating supply. Consequently, the supply-side pressure weakens even when volatility increases across the board. 

Such a combination is a reflection of confidence-driven restraint, rather than forced holding – A pattern historically aligned with structural consolidation phases.

Scarcity metrics tighten as valuation compresses

Scarcity-based valuation signals have consistently improved, relative to market conditions. The Stock-to-Flow Ratio rose to 798.8k, reflecting a 12.5% hike, as post-halving issuance dynamics tightened circulating supply. 

Meanwhile, the Stock-to-Flow Reversion had a value of 2.09 at press time, up 34.86% – Indicating that the price remains compressed relative to scarcity-implied valuation. However, this divergence does not trigger immediate expansion. 

Instead, it signals valuation tension building beneath the surface. As scarcity improves while the price lags, compression replaces trend movement. 

Historically, similar conditions have preceded directional expansions rather than breakdowns. Particularly when holder distribution has remained muted.

Bitcoin spot buyers quietly maintain demand dominance

Spot market data confirms buyers have continued to absorb the supply. The 90-day Spot Taker CVD has been taker-buy dominant, signaling sustained aggressive buying on spot markets. 

This behavior is evidence of real capital deployment, rather than leverage-driven speculation. However, sellers still meet bids, preventing sharp upside continuation. 

Therefore, absorption replaces momentum chasing. This pattern often defines accumulation phases, rather than late-cycle rallies. 

Additionally, spot dominance reduces reliance on derivatives-led moves, improving structural stability. 

As demand continues to absorb the supply without chasing the price, the market builds a stronger base instead of fragile upside extensions.

Breakout achieved, but consolidation still rules

At the time of writing, Bitcoin had exited its descending channel, but its price action highlighted consolidation rather than immediate continuation. In fact, Bitcoin was trading within a defined range, with $84,473 acting as firm demand and $93,476 capping upside attempts. 

Multiple daily closes above the former channel resistance hinted at acceptance, rather than rejection. 

A sustained move above $93,476 would confirm trend continuation, while the loss of $84,473 would invalidate the breakout and reopen downside risk.

Bitcoin liquidations lose their ability to drive downside

Finally, liquidations data underlined the weakness of the downside pressure. At the time of writing, total liquidations had climbed to approximately $6.6 million. Short liquidations accounted for about $4.64 million, compared to $1.95 million in long liquidations. 

This imbalance could be seen as evidence of failed bearish positioning, rather than panic-driven long exits. 

Additionally, liquidation spikes were clustered near intraday lows without triggering continuation – A sign that buyers absorbed forced selling. 

As a result, leverage flushes might be relieving pressure instead of amplifying downside. This shift aligns with restrained holder behavior and steady spot demand, reinforcing structural stability.

To put it simply, Bitcoin’s ongoing structure is a reflection of controlled consolidation rather than weakness. 

Cumulatively, all the aforementioned signals favor stability while the market prepares for its next decisive move.

Final Thoughts

• Long-term holders continue to restrict supply, limiting downside despite muted momentum.
• Spot demand and fading liquidations support consolidation, rather than breakdown risk.