Long-term Bitcoin (BTC) holders have moved more than 370,000 coins this month, triggering a debate among analysts over whether the $85,000 support level will hold or the cryptocurrency will slide toward $80,000.

What Happened: Large-Scale Distribution

Multiple market observers noted a significant uptick in spending from older wallets over recent days, a pattern that typically signals early holders selling into strength following the run to new highs.

The $85,000 level has emerged as a critical pivot point. It aligns with the 78.6% Fibonacci retracement level and coincides with heavy consolidation seen late last year.

Analyst 0xVL described the support as "the line in the sand" while acknowledging that ETF inflows cannot fully offset a coordinated exit by whales and miners facing revenue pressure. Order books and open interest have been clustering in this zone.

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Why It Matters: Potential Capitulation

Bitcoin recently fell below its 2-Year Moving Average for the first time since October 2023, a development that analyst CryptoJoe called a historically powerful signal. Previous instances when the price dropped below this level led to further downside followed by prolonged accumulation phases.

Not all observers see a sustained decline ahead. BlockViz.xyz characterized current conditions as "ownership rotation" rather than a full trend break, noting that institutional and dip-buyers may absorb long-term holder supply.

Analyst Architect of Truth pointed to whale wallet data showing large holders engaged in profit rotation rather than total market exit. The buildup of short positions around $93,000 creates concentrated liquidity that could fuel a rapid move higher if those traders are forced to cover.

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