Bitcoin moved near a critical resistance area in May 2026 while onchain activity weakened sharply. Analyst Ali Charts said active Bitcoin addresses dropped from 821,000 to 494,000 over two weeks, a decline of 39.80%. In his view, the pullback in activity pointed to softer short-term trading during the current consolidation, with casual participants stepping back as longer-term holders retained a larger grip on circulating supply.
$75,733 Support and $78,258 Resistance Define the Immediate Range
Ali Charts identified two price levels that now frame Bitcoin’s next directional move. Resistance sits near $78,258, while support stands around $75,733. A break above resistance could open the way toward $84,569. A move below support, on the other hand, could leave BTC exposed to downside pressure near $66,898. The range is tight. The implication is not.
He also said Bitcoin has continued to trade inside structured channels during the broader market reset. That setup has allowed liquidity to build inside the range before a larger move takes shape. With price testing the upper boundary, traders are watching closely to see whether BTC can reclaim higher ground or slip back into the middle of the band.
Derivatives Turn More Bullish While Large Holders Rebalance
As Bitcoin approached the top of the channel, derivatives traders added to bullish positioning. Ali Charts noted that funding rates climbed to 0.4%, the highest reading in more than two months. Even so, spot price remained below major resistance, leaving a gap between stronger leverage-driven sentiment and the market’s inability so far to confirm a breakout.
At the same time, onchain data pointed to active portfolio reshuffling among larger entities. During the consolidation phase, those holders redistributed more than 18,447 BTC, according to Ali Charts. That suggests supply is still being moved around inside the current range, even as headline price action appears compressed.
Earlier Drop Still Shapes the Current Setup
Chart data showed Bitcoin traded above the $91,000 to $96,000 area in January 2026 before reversing lower. By early February, BTC had fallen toward the $62,000 to $67,000 region, with trading volume increasing during the decline. The move pushed price below both the 50-day and 200-day moving averages.
Buyers returned gradually through March and April as Bitcoin stabilized. By May 2026, BTC had rebounded toward resistance near $81,800 before losing momentum again. It later traded around $76,600, while the 200-day moving average stayed near $78,400. With network activity falling, derivatives positioning getting more aggressive, and larger holders redistributing coins near resistance, the zone between $75,733 and $78,258 remains the market’s clearest short-term decision area.