Bitcoin is holding firm near $109,806, up 0.85% in the past 24 hours, as traders monitor a critical technical threshold that has historically marked major inflection points. According to Glassnode, BTC recently retested the 0.85 cost-basis band, a level around $109K that has previously triggered strong rallies when maintained, but deeper pullbacks when lost.
The firm’s Supply Quantiles Cost Basis Model shows that holding this support could pave the way for a continuation toward new highs, while a breakdown might expose the lower 0.75 cost band near $98K.
Market data from CoinMarketCap shows Bitcoin’s market capitalization at $2.18 trillion, with 24-hour trading volume down slightly to $65.4 billion, indicating lower volatility as traders await confirmation of the next move.
Long-Term Holders Begin to Distribute
One reason for Bitcoin’s hesitation may lie beneath the surface. Analyst Axel Adler Jr. reported that since July 1, long-term holders (LTHs) have been offloading coins at the fastest rate since 2022. Data shows that over 810,000 BTC have been distributed in the past four months, reducing total long-term holdings from 15.5 million to 14.6 million BTC.
“Even under this selling pressure, Bitcoin has hit new all-time highs twice,” Adler noted. “But as long as long-term holders keep taking profits, the upside potential will remain limited.”
The current phase reflects a healthy yet cautious redistribution typical of late-stage bull market behavior, where early accumulators sell into strength while newer entrants absorb the supply.
Demand Absorption Still Intact
Despite these profit-taking trends, demand appears to be absorbing the LTH sell pressure effectively. Exchange balances have not surged, suggesting that most coins are being bought and moved to cold storage rather than flipped on open markets.
The combination of resilient demand and controlled selling has kept Bitcoin stable within a tight range, forming what analysts call a “cooling consolidation phase”, a potential setup for the next leg up if support holds.
What’s Next for BTC
Traders are now watching whether Bitcoin can hold above $109K in the coming sessions. A successful defense of this band could reestablish bullish momentum and trigger a retest of the $115K–$118K resistance zone, while a drop below $108K would increase the risk of revisiting the $98K cost-basis floor.
For now, Bitcoin remains in a delicate balance: long-term holders are taking profits, short-term buyers are stepping in, and the market is deciding whether this is a pause before the next rally, or the start of a broader cooldown.
Either way, the $109K level stands as the line that could define Bitcoin’s next major move.
