This week, 15,000 Bitcoin were moved at a loss by short-term holders, raising the chance for a BTC price dip under $100,000.
Key takeaways:
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Short-term Bitcoin holders sold 15,000 BTC at a loss throughout the week.
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Onchain data suggests a Bitcoin price bottom in the $97,000–$94,000 zone.
Bitcoin (BTC) is experiencing a relatively subdued week, as armed conflict between Israel and Iran and uncertainty ahead of the FOMC led investors and traders to stay sidelined. Despite the quiet markets, onchain data from CryptoQuant revealed a notable development, which saw over 15,000 BTC held by short-term holders (STHs) move at a loss this week.
According to Glassnode data, 959 BTC were transferred to exchanges at a loss on Monday, which surged to 16,700 BTC by Wednesday and coincided with a drop in BTC’s price to $103,500 from $106,500. This activity underscores a familiar behavioral pattern where STHs, often called “weak hands,” tend to panic-sell during price downturns, frequently realizing losses.
This selling behavior represents heightened STH activity during market dips. When these weaker hands exit their positions, the coins often transition to long-term holders (LTHs), or “strong hands,” contributing to market stabilization and a more resilient price base.
Notably, the overall supply held by STHs has declined, especially following significant drawdowns. This gradual reduction in weak-hand selling pressure opens opportunities for accumulation and may indicate the emergence of a price floor.
Further insights can be drawn from the STH-LTH net position change chart, which shows aggressive selling by STHs over the past month. Notably, most of this selling has been absorbed by LTHs, a dynamic that likely plays a key role in maintaining BTC’s price above the $100,000 mark.
Related: Here’s when Bitcoin analysts expect new BTC price volatility
Bitcoin in a “blind spot,” needs buyer demand
Bitcoin is currently navigating a “blind spot” in the market, according to a data analysis platform, Swissblock. Data reveals a persistent negative spot volume delta since June, signaling selling pressure despite a recent price rebound driven by low buying volume. While downside pressure is easing, this suggests an extension of the dip before a significant breakout, depending on renewed demand.
Considering a short-term dip occurs before a rally, Bitcoin’s onchain cost-basis for short-term holders outlines a support range between $97,000 and $94,000. This range could be the local bottom, sweeping key liquidation levels under $100,000 and re-testing a fair value gap (FVG) and daily order block between the aforementioned levels.
Related: Bitcoin volume metric suggests ‘$130K-$135K BTC will happen’ in the summer
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
