Bitcoin is currently locked in a tight consolidation that has lasted for over two weeks, trading within a narrow range just below its local highs. While volatility has diminished, suggesting that a breakout—or breakdown—may still take time to materialize, on-chain data reveals a more dynamic picture beneath the surface. According to key metrics from CryptoQuant, large holders have locked in a significant portion of profits over the past year, particularly during Bitcoin’s sustained rally through 2024 and into 2025.
This wave of profit-taking reflects a healthy distribution phase, as many whales and long-term holders capitalized on Bitcoin’s strength. However, what makes this trend notable is the market’s ability to absorb it. New demand continues to flow in, preventing major price drops and maintaining a bullish structure in the current consolidation. This balance between old investors locking in gains and fresh capital entering the market suggests underlying strength in Bitcoin’s long-term outlook.
With both demand and supply showing equilibrium, the coming weeks could be critical in defining the next major move for BTC. Until then, this tight range reflects a market in transition—stable, yet quietly building toward its next directional impulse.
Whale Supply Declines While Institutional Demand Drives Market Stability
Top analyst Axel Adler recently shared key insights into Bitcoin’s supply dynamics, highlighting a significant shift in ownership structure over the past year. According to Adler, the supply held by whales—wallets with over 1,000 BTC—has decreased by 502,000 BTC. This reduction suggests that long-term holders and large entities have been consistently locking in profits throughout Bitcoin’s strong 2024 rally.
However, what makes this trend remarkable is the market’s resilience. Despite the substantial sell-side pressure from whales, institutional demand has surged, effectively absorbing the distribution and maintaining price stability. This influx of new participants—ranging from funds to corporations—has helped Bitcoin not only preserve its structure but also continue climbing throughout the year.
The chart reflects this growing demand: while BTC remains just under its all-time high of $123,000, the structure shows no signs of exhaustion. Price is consolidating rather than correcting, which suggests the bull cycle is still active but entering a mature phase. As new capital enters the market, it reinforces a healthy supply-demand balance, allowing Bitcoin to build a base for the next leg up.
Adler notes that this transition from old whales to new institutional participants is key for long-term sustainability. If the trend continues, Bitcoin may not only retest its highs but establish a stronger foundation supported by broader ownership. As BTC continues to trade just below record levels, the market appears poised for a continuation, driven not by retail euphoria but by smart capital with conviction in the long-term vision of digital assets.
BTC Price Analysis: Consolidation Between Key Levels
Bitcoin continues to trade in a tight consolidation range between $115,724 and $122,077, as shown in the 4-hour chart. The price has hovered just below the $123K all-time high for more than two weeks, suggesting the market is building strength for a major move. Price action remains bullish overall, with BTC maintaining position above all key moving averages: the 50 SMA ($118,040), 100 SMA ($118,126), and 200 SMA ($114,413). These levels are beginning to converge, reflecting declining volatility and rising pressure for a breakout.
Volume has started to pick up slightly, especially during the most recent retest of the $116K support zone, hinting at renewed buyer interest. However, resistance around $122K has repeatedly rejected upward moves. This suggests that Bitcoin needs a strong catalyst or volume surge to break through.
The longer BTC stays within this range while holding above $115K, the more likely it is to break higher with momentum. But if bears reclaim $115K and trigger a close below the 200 SMA, the consolidation could turn into a deeper retrace. All eyes are on volume and volatility, which will define the next move.
Featured image from Dall-E, chart from TradingView
