Key Insights

• Short-term Bitcoin holders sold 15,000 BTC during the past week.
• Onchain data indicates Bitcoin prices may have a support level around $97,000 to $94,000.

Bitcoin (BTC) had a relatively quiet week, influenced by escalating tensions between Israel and Iran, creating uncertainty for many traders and investors looking ahead to the FOMC meeting. Even with a subdued market, Cryptoquant’s on-chain data highlighted some significant activity: over 15,000 BTC were sold by short-term holders (STH) this week.

According to GlassNode data, a transfer of 959 BTC resulted in losses on Monday but surged to 16,700 BTC by Wednesday. This uptick coincided with a drop in Bitcoin’s price, from $106,500 to around $103,500. It’s not unusual for short-term holders, often labeled as “weak hands,” to panic sell during such downturns, often ending up with losses.

This selling behavior marks a rise in activity from short-term holders during this price dip. When these weaker hands exit, their coins typically transition to long-term holders (LTH), or “strong hands,” which can help stabilize the market and create a more robust price foundation.

Notably, there has been a decline in the overall supply held by short-term holders after a significant pullback. This gradual reduction in sales pressure from weak hands may allow for more accumulation opportunities and hint at the creation of certain price ranges.

Further insights can be gathered from the STH-LTH Net Position Change Chart, which illustrates aggressive selling by STH over the past month. Most of these sales have been absorbed by long-term holders. This dynamic might be crucial for maintaining Bitcoin prices above $100,000.

Related: Bitcoin Analysts Eyeing Potential New Price Volatility

Bitcoin Faces Demand Challenges

Data from SwissBlock indicates that Bitcoin is navigating through “blind spots” in the market. The sustained negative spot volume delta since June suggests sales pressure, even as the recent price rebound is attributed to low buying volumes. This softer pressure might indicate a continuation of the dip before a substantial breakout, contingent on demand conditions improving.

Short-term dips typically precede rallies, with the on-chain cost basis for short-term holders establishing a support range between $97,000 and $94,000. This range may challenge key support levels below $100,000 and retest the fair value gap between those noted levels and daily order blocks.

Related: Bitcoin Volume Metrics Suggest Potential for $130K-$135K BTC This Summer

This content does not constitute investment advice or recommendations. All trading and investment activities carry risks, and individuals should conduct thorough research when making decisions.