Bitcoin price is hovering between $66,000 and $68,000, struggling to reclaim the $70,000 level that has capped upside for more than a month. Despite repeated rejections, the broader structure remains intact, with bulls quietly defending support while selling pressure appears to be easing.
On-chain data now shows a noticeable slowdown in long-term holder distribution, suggesting that aggressive selling has cooled. This shift has strengthened expectations among larger market participants that Bitcoin could attempt a move toward the $72,000 region if resistance finally gives way.
The key question, however, remains unresolved: will fading distribution provide enough fuel for a breakout, or will leveraged bets and overhead supply continue to keep BTC trapped below $70,000?
Long-Term Holders Are No Longer Selling Aggressively
According to Glassnode’s Long-Term Holder Net Position Change metric, months of distribution appear to be slowing. The chart shows an extended red phase throughout late 2025, indicating long-term holders were reducing exposure during previous rallies.
However, recent data suggests this trend is stabilizing. The shift toward neutral and slightly positive net positioning implies that large, long-term participants are no longer aggressively selling into strength.
Historically, when long-term holder distribution fades, Bitcoin often enters a consolidation phase before attempting a renewed upside move. While accumulation has not yet turned aggressive, the decline in net selling suggests that supply pressure may be thinning.
This structural shift matters because long-term holders typically represent stronger hands within the market cycle.
$40 Million 40x Short Position Raises Volatility Risk
At the same time, derivatives data reveal a significant leveraged position in play. A trader has opened a $40.1 million short position on Bitcoin using 40x leverage, with an entry near $67,018. The liquidation level for this position sits around $72,322. In simple terms, if Bitcoin rises roughly 7–8% from here, that position gets wiped out.
This creates an important technical setup where, if a break above $70,000 is coupled with an increase in the bullish momentum, it may bring the short positions into danger. At 40x leverage, even a relatively modest upside move can trigger forced liquidation. If that happens, automated buying pressure could push BTC rapidly toward or beyond $72,000. However, as long as Bitcoin remains below $70,000, the short position remains structurally intact.
What Happens Next?
There are two realistic paths.
If buyers absorb supply and push BTC price above $70,000, the fading long-term selling pressure combined with a vulnerable short position could create a squeeze toward $72,000 or higher. But if resistance holds again, Bitcoin may continue consolidating below $70,000 while leverage slowly unwinds.
The market isn’t euphoric. It isn’t panicking either, but coiled. And the next breakout attempt could determine whether $72,000 becomes the next milestone for the Bitcoin (BTC) price rally or remains just out of reach.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.