Bitcoin sent mixed signals as Lightning Network capacity hit a fresh high, while long term holder distribution rose and price held a key weekly support zone.
Lightning Network capacity hits fresh high as Taproot Assets update targets multi asset transfers
The Bitcoin Lightning Network set a new capacity high, as tracking sites put total public capacity around 5,606 BTC. Meanwhile, Amboss data showed the peak closer to 5,637 BTC, marking a fresh record for bitcoin committed to payment channels.
Lightning Network All Time Capacity. Source: X
The increase followed broader exchange support and more BTC being locked into Lightning channels. However, the same reports noted that node and channel counts stayed below earlier cycle highs, which suggests operators concentrated liquidity rather than expanding the network’s visible footprint.
At the same time, Lightning Labs released Taproot Assets v0.7, which advanced tooling built around Taproot-based assets over Lightning. The update added features aimed at making multi asset transfers more practical across Lightning rails.
As a result, developers kept pushing experiments that extend beyond pure BTC payments, including stablecoin-style trials on Lightning. Still, the network’s main signal today came from capacity growth, which showed more bitcoin flowing into channels that support faster, low-fee transfers.
Bitcoin OG Selling Hits Five Year High, CryptoQuant Chart Shows
Bitcoin long-term holders are distributing coins at one of the fastest rates seen in the past five years, according to on-chain data shared by analyst Rand and sourced from CryptoQuant.
BTC Long Term Holder Flow. Source: CryptoQuant / X
The chart tracks long-term holder flows alongside bitcoin price and realized price data. It shows repeated spikes in long-term holder distribution, with the latest surge standing out against recent years. Historically, similar bursts appeared during late-cycle phases in previous market cycles.
At the same time, the data indicates that long-term holder supply has started to decline as distribution rises. In past instances, these conditions coincided with periods when older holders moved coins after extended price advances, while newer market participants absorbed the supply.
However, the data reflects behavior rather than outcomes. While earlier cycles linked heavy long-term holder selling with market highs, on-chain metrics alone do not determine future price direction and instead highlight shifts in holder behavior across cycles.
Bitcoin Sits on Key Weekly Support, Analyst Jelle Says
Bitcoin is holding above a key weekly support zone, according to a chart shared by market analyst Jelle, even as short-term price action remains volatile.
Bitcoin Weekly Support Level. Source: TradingView / X
The weekly chart shows Bitcoin consolidating near a long-standing support area that previously acted as a base during earlier pullbacks. Despite recent downside pressure on lower timeframes, the broader structure continues to reflect higher lows compared with prior market cycles.
Jelle said the weekly support level remains the critical reference point for trend analysis. He added that short-term chart weakness does not change the larger technical picture as long as Bitcoin stays above that zone.
The commentary reflects a broader view among technical analysts who prioritize higher-timeframe structures over intraday moves. Weekly support levels often carry more weight because they capture longer-term positioning rather than short-term sentiment shifts.
Source: https://coinpaper.com/13177/bitcoin-signals-split-as-lightning-capacity-jumps-and-o-gs-sell-into-weekly-support
