Bitcoin’s Path To $120,000 Could Be Delayed as Illiquid Supply Shrinks
A decline in Bitcoin's illiquid supply suggests long-term holders are selling, potentially delaying its rally toward $120,000.Summary
Bitcoin's recent modest recovery may face challenges due to a shrinking illiquid supply, with about 62,000 BTC moving out of inactive wallets since mid-October. This indicates increased circulating supply, which can hinder sustained price rallies by signaling reduced conviction among long-term holders.
Market dynamics show momentum traders have exited, and dip-buyers are not aggressively countering the selling pressure, leading to weakened upward momentum. Furthermore, a lack of activity from first-time buyers suggests limited fresh capital inflows are weighing on market strength.
Currently trading around $112,513, Bitcoin needs to establish this as solid support. Without improved liquidity and renewed demand, the price may consolidate between $108,000 and $115,000. A decisive break above $115,000 is required to invalidate the current cautious outlook and reignite the path toward the $120,000 target.
(Source：BeInCrypto)