Bitcoin BTC/USD has demonstrated exceptional resilience in the face of a massive sell-off, with over $1.4 trillion in unrealized gains still held by market participants.
According to Glassnode‘s weekly report, an overwhelming 97% of Bitcoin’s circulating supply remains in profit, demonstrating the market’s maturity and liquidity depth.
What Happened: Last weekend weekend, a legacy Bitcoin holder distributed approximately 80,000 BTC, valued at $9.6 billion, via Galaxy Digital‘s OTC desk.
Despite this significant sell-side volume, the market absorbed the pressure without collapsing, briefly dipping to $115,000 before rebounding to $119,000.
In a note sent to Benzinga, Illia Otychenko, lead analyst at CEX.IO, observed a similar tension building within the market.
“Bitcoin is coiling like a spring,” he said, noting that the Choppiness Index has reached its highest level since early 2024 — a pattern historically associated with explosive directional moves. “Volatility is being compressed. A breakout appears imminent.”
Bitcoin’s current rangebound trading between $115,000 and $120,000 aligns with historical supply concentration zones, Glassnode noted.
This zone also overlaps with the average cost basis for short-term holders, amplifying its significance as both a support and decision-making level.
Also Read: JPMorgan Partners With Coinbase To Expand Crypto Access For 80M Customers
Why It Matters: Further strengthening this thesis is the persistent decline in available Bitcoin supply.
Disclosure: 82% of retail CFD accounts lose money
“So far in 2025, Bitcoin’s exchange reserves have dropped 14%, and OTC balances by 24%,” said Otychenko. “This is the steepest annual supply drawdown in Bitcoin’s history, yet the price has only gained 26% YTD. That mismatch could point to a delayed market reaction and potential upside ahead.”
Glassnode’s report reinforced that conclusion, stating that elevated unrealized profit levels typically precede, but do not immediately trigger, profit-taking events.
It cited previous cycles where markets continued to rise for weeks after profit-taking began, suggesting current bullish momentum may have further room to run.
Glassnode’s data also showed that long-term holders still control 53% of Bitcoin’s supply, even after record distributions.
This continued ownership concentration suggests deeper pockets of potential supply remain dormant, only likely to unlock at significantly higher prices.
Meanwhile, key support levels are forming around the 20-day EMA and the $110,000–$117,000 range.
Should Bitcoin break above its $125,000 resistance, analysts say the $141,000 region could be the next major test, where intensified profit-taking is expected based on historical supply patterns.
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