Nearly 80% Of Bitcoin Supply Hasn’t Moved As Long-Term Holders Tighten Grip

Bitcoin has climbed above a key price zone that analysts had flagged as a major obstacle — and that move is drawing fresh attention to who actually holds the coin.

Around 830,000 BTC has left short-term trader wallets in recent months, pushing the share of Bitcoin held by long-term addresses to 78%, up from 74% in the previous cycle.

Data from on-chain tracking account Alphractal shows the shift is one of the largest recorded in recent memory. As more supply gets locked away in long-term wallets, the amount available for active trading keeps shrinking.

That tightening supply tends to work in favor of prices during periods of steady demand. When fewer coins are circulating, selling pressure during price dips tends to be weaker.

Reports indicate that long-term holders have been absorbing supply consistently relative to price movements, which has contributed to thinner liquidity across the market.

𝟳𝟴.𝟯% 𝗼𝗳 𝗕𝗧𝗖 𝘀𝘂𝗽𝗽𝗹𝘆 𝗶𝘀 𝗻𝗼𝘄 𝗳𝗿𝗼𝘇𝗲𝗻 𝗶𝗻 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝗵𝗮𝗻𝗱𝘀. 𝗨𝗽 𝗳𝗿𝗼𝗺 𝟳𝟰.𝟭%.

That 4.2 percentage-point shift = roughly 830,000 BTC migrated from short-term to long-term cohort over the cycle. STH conviction is crumbling, LTH conviction… pic.twitter.com/aL8pTSk3Js

— Alphractal (@Alphractal) May 9, 2026

Bitcoin recently broke through a resistance zone between $78,000 and $80,000 — a range that had acted as a bearish block.

According to an analyst, that zone has now flipped to support, and the next target to the upside sits at $90,000. But the setup carries risk on both sides.

If that newly established support level fails to hold, a pullback toward $68,000 — and possibly as low as $60,000 — becomes a real possibility.

Reports note that tighter liquidity zones increase the chance of sharp moves at key price levels, making the $78,000 area especially critical for short-term direction.

A rejection at $82,000 could also be enough to swing momentum back toward the bears, according to the same analysis.

Zooming out, the picture is less clear. Bitcoin remains in a corrective phase after reaching an all-time high of $120,000, wi th lower highs and lower lows forming despite brief rallies.

The price is still trading below resistance at $97,000, a level analysts say would need to be reclaimed to signal a stronger shift in trend.

Two major supply zones between $79,000 and $94,000 continue to sit overhead, acting as a ceiling for the current rally. A support channel has been forming since prices bounced from around $59,000.

The data points to a market where long-term conviction is rising but short-term direction remains unsettled. Whether buyers can hold the ground they’ve gained will likely shape the next significant move.

Featured image from Unsplash, chart from TradingView