Bitcoin $BTC might be heading toward a supply squeeze.

Right now, the amount of Bitcoin held by short-term traders is dropping, while long-term holders are controlling more of the supply. This usually means weaker hands are selling, and stronger investors are buying and holding.

In past cycles, the same pattern appeared before big price moves. When short-term supply falls into the 80–83% range, the market often becomes quiet for a while then volatility increases and prices can move sharply.

At the moment, the price is pulling back a bit, but long-term holders are still holding a large share of the available Bitcoin. If this trend continues, the market could be setting up for a supply squeeze, where fewer coins are available to buy and prices may start rising faster.