Bitcoin Supply Concentrates In Experienced Hands – LTHs Show No Signs Of Distribution

Bitcoin is consolidating just below its all-time high near $112,000, maintaining a bullish structure as momentum builds across the broader crypto market. After a strong rally in recent weeks, BTC is showing signs of strength and stability, trading in a tight range that many analysts view as a launchpad for the next major move. The setup points to further upside, with growing confidence that Bitcoin could break into new highs soon.

Analysts are increasingly optimistic, calling for an expansive summer as capital begins to flow back into crypto markets. Both technical resilience and compelling on-chain data are fueling the sentiment shift. According to insights from Alphractal, long-term holders (LTHs)—those holding BTC for more than six months—continue to accumulate but not distribute. In fact, the supply held by LTHs is steadily increasing, a sign of deep conviction and reduced liquid supply in the market.

This behavior from experienced holders reinforces the bullish thesis: when LTHs are not selling into strength, it often sets the foundation for sustainable rallies. With a strong technical base, rising institutional interest, and long-term holders tightening supply, Bitcoin appears primed for a powerful summer ahead.

Bitcoin Consolidates As Market Dynamics Shift

Bitcoin is currently consolidating just below the $110,000 level, holding steady after an aggressive rally that brought it close to its all-time high of $112K. Despite the pause in upside momentum, bulls remain firmly in control. Both the daily and weekly charts show a well-defined uptrend structure, with higher highs and higher lows continuing to build. The consolidation appears to be a healthy cooldown before the next major move.

Top analyst Darkfost recently shared insights into the market’s underlying structure, focusing on the behavior of Long-Term Holders (LTHs) and Short-Term Holders (STHs). According to Darkfost, LTHs are not distributing their coins—in fact, they are doing the opposite. The supply held by LTHs is steadily increasing, signaling conviction and reinforcing the idea that seasoned investors expect more upside.

Interestingly, the behavior of STHs paints a very different picture. Darkfost expressed surprise at the data, which shows that STHs are actively distributing. Unlike past instances where STH selling occurred during corrections, this time the selling is taking place at an all-time high. It suggests a possible transfer from strong hands (LTHs) to weaker hands (STHs), a dynamic that often precedes increased volatility.

While STHs may be locking in profits at the top, Darkfost notes it’s hard to say they’re wrong—after all, BTC is at an ATH, not in a mid-cycle dip. Still, with LTHs continuing to hold and reduce available supply, the broader trend remains bullish. The coming days could define whether BTC reclaims $112K and enters price discovery or retreats under growing short-term pressure.

Price Action Details: Key Levels To Watch

Bitcoin is currently trading at $109,863 on the daily chart, holding firm just below its all-time high of $112,000. Price action remains bullish, with BTC consolidating in a tight range after a powerful breakout above the $103,600 resistance zone, now acting as a key support level. This consolidation appears healthy and controlled, as buyers continue to defend higher lows.

The 34-day EMA sits at $101,928 and is rising steadily, confirming strong short- to mid-term momentum. BTC is also comfortably above the 50, 100, and 200-day SMAs, all of which are now aligned to the upside—a classic signal of trend strength. Volume has slightly decreased during this phase, which is typical for consolidation after a breakout.

This price behavior suggests bulls are not exhausted but rather preparing for the next leg up. A daily close above $112K with volume confirmation would likely push BTC into price discovery, with potential upside targets around $120K to $125K.

Until then, the $103,600–$105,000 zone remains the critical area to hold. As long as BTC stays above this region and maintains its higher structure, the broader uptrend remains intact, and the bullish outlook is unchanged.

Featured image from Dall-E, chart from TradingView