Bitcoin's Supply Shift: Investors Hold On, Demand Zones Form

Bitcoin Supply Movement and Market Dynamics: A Shift in Demand and Investor Conviction

Bitcoin's supply movement and market dynamics have been shifting, with a notable change in investor conviction and demand. By early 2025, around 7.91% of Bitcoin's overall supply had been transacted, determined by the creation date of UTXOs (Unspent Transaction Outputs). While this figure may seem impressive, it is lower than the percentages seen in previous years, such as 13.95% in 2017 and 16.34% in 2021. This indicates that the supply side of the equation is not being pushed up as expected.

An important part of Bitcoin's supply still connects to last year's investors. In 2025, around 31.34% of Bitcoin's supply last moved in 2024. This figure is slightly higher than the 29.27% noted in early 2017 but is lower than the 2021 number of 27.46% for "currency" retained from the previous year. The retention of coins from 2024 might indicate that a number of investors are holding onto their Bitcoin, despite the recent price ups and downs, with the expectation that they’ll see further appreciation in their holdings in the long run.

A pivotal demand zone has been formed between $96,475 and $99,360, which now stands as a robust support level for Bitcoin. This zone is significant not just for its precise price points but for what it historically indicates: that demand has previously stepped in at these levels, making them good areas to accumulate BTC. For the market as a whole, this zone’s being exceeded and retaken is a positive sign. Two demand zones above the current market price are now acting as magnets to pull the price in their direction and to help maintain the market’s bullish bias.

For an extended upward rally, Bitcoin has to deal with a primary resistance zone situated between $102,350 and $103,900. This supply wall, if breached, might incite a fresh buying wave that would catapult Bitcoin toward nascent all-time highs. Meanwhile, traders and analysts have been keeping a close watch on these very levels, since the price