Bitcoin is consolidating above the $80,000 level, yet trading activity remains subdued as holders increasingly take profits. According to data cited by market analysts, about 86% of Bitcoin deposited into exchanges in early October came from short-term holders already in profit, suggesting demand is not keeping pace with available supply entering the market.
The distinction between healthy profit-taking and selling driven by weakening conviction has become central to Bitcoin's near-term price action. With BTC trading nearly 10% above the $75,000 level—the short-term holder cost basis for the current cycle—profitable traders face a decision point.
Bitcoin closed the first week of October down more than 3%, with its lower wick frequently testing the $80,000 zone over the past two weeks. A breakdown below this support level could bring the $75,000 short-term holder cost basis into focus next.
Dormant Supply Compounds Selling Pressure
Long-dormant Bitcoin wallets have begun moving significant amounts of cryptocurrency. According to on-chain data, an original Bitcoin wallet reactivated after years of inactivity and moved 4,582 BTC, worth approximately $377.58 million. This follows similar activity from another whale wallet that moved 4,500 BTC worth $375.72 million after being inactive for over four years.
Long-term holders are now back in profit territory. Bitcoin's long-term holder SOPR—a metric measuring profit levels—has crossed above its yearly average of 1.10, standing at 1.25 on a weekly basis and 1.16 on a monthly basis. This increased profitability among long-term holders amplifies the potential for additional profit-taking.
Weak Trading Activity Raises Concerns
Trading liquidity remains a constraint on price movement. Spot and U.S. Spot Bitcoin ETF volumes are averaging around $6.8 billion per day, indicating reduced market participation. With tighter liquidity and multiple groups of profitable holders at the ready to sell, Bitcoin's ability to defend key support levels has diminished.
If short-term holders continue to lock in gains and dormant wallets continue returning to market circulation, Bitcoin may struggle to maintain the $80,000 support zone.
