Bitcoin price at $77660 shows 7.75M BTC underwater, creating supply overhang typical of bear markets resolved only through capitulation.

Bitcoin holds 7.8M BTC at a loss near $76.7k with substantial supply overhang from cycle highs weighing on sustained upside.

According to Glassnode, BTC long-term holders shifted from heavy spending in H2 2025 to reduced spending in January 2026, with profit-taking volumes cooling to levels typical of shallow bear phases and conditions associated with heightened uncertainty that often appear during mid-bull market pauses or the early stages of deeper bear markets, source: Glassnode on X Jan 12, 2026 https://x.com/glassnode/status/2010755873229205606 https://glassno.de/4pzkKgI. According to Glassnode, long-term holder distribution has decelerated and net outflows have rolled over from extreme levels, indicating the market is progressively absorbing long-held supply and that a large portion of overhead supply may now be worked through, source: Glassnode on X Jan 12, 2026 https://x.com/glassnode/status/2010700942539210936 https://glassno.de/3ZdVEct.