Key Highlights:
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Since Sunday, short-term Bitcoin holders have sold over 20,000 BTC at losses.
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Technical indicators suggest that pushing Bitcoin prices under $100,000 might be quite challenging for bearish traders.
Bitcoin (BTC) prices dipped below $116,000, influenced by the uncertainty surrounding Jerome’s upcoming speech at Jackson Hole. This situation prompted investors and traders to reassess their risk and adopt a more cautious approach.
Short-Term Holders Cashing Out
Last week, Bitcoin saw a decline of 7.6% from its peak of $124,500. Following this downturn, onchain data revealed that over 20,000 BTC held by short-term holders—those who keep assets for less than 155 days—were lost and transferred to exchanges in just a three-day span.
On Sunday alone, more than 1,670 BTC were sold and moved to exchanges. This figure grew to 23,520 BTC by Tuesday, as BTC prices fell from $118,600 to $114,400, which is a 3.5% drop, according to data from GlassNode.
This trend underscores a familiar pattern where short-term speculators tend to panic during market declines, often realizing losses.
A CryptoCant analyst, known as Crypto Mevshimi, noted that the losses for Bitcoin’s short-term holders began in January during a significant correction phase. They pointed out that for the first time since that downturn, the short-term holder spent profit ratio (STH-SOPR) returned below 1, indicating that these investors are realizing losses once more.
Historically, such realizations can either signal a deeper correction in the market or help clear out weaker investors, allowing for more solid recoveries, as suggested by Crypto Mebsimi.
“The selling of these losses will serve as an important indicator of market health. If it’s absorbed swiftly, it may reflect patterns seen in previous resets.”
Challenging Times for Bears as Bitcoin Drops Below $100,000
With BTC dipping below $115,000 recently, numerous traders and analysts are anticipating further price adjustments toward the $100,000 mark.
For this scenario to unfold, Bitcoin must overcome the $100-$110,000 barrier, established over 100 days after its previous breakthrough on May 8, according to a post from SwissBlock.
“It’s not unbreakable, but it will be a tough battle for the bears.”
Analyst AlphaBTC warned that if Bitcoin falls below Monday’s low of $114,700, it could slide down to the demand zone between $110,000 and $112,000.
On the other hand, the forecasting platform Polymarket indicates that the majority of projected outcomes for Bitcoin in the upcoming week center around $114,000, with a 73% likelihood. However, if it drops under $112,000, odds of reaching $110,000 or $108,000 rise to 18% and 16%, respectively.
As previously reported, Bitcoin may continue to stay within its current range, as many of its investors are likely to cash out profits, especially after recent peaks.
This article does not constitute financial advice. All investment and trading activities carry risk, and readers should conduct their own research before making decisions.
