This week, Bitcoin’s momentum is showing signs of stress because short-term holders sold over 15,000 BTC, which is worth about $975 million, at a loss. This has raised new worries about price pressure in the near future.
Glassnode and CryptoQuant’s on-chain data show that wallets that had held Bitcoin for 30 days or less sold off large amounts of Bitcoin in a wave of capitulation after Bitcoin failed to break through the $110,000 resistance level.
🧠 What the On-Chain Data Shows
📊 The Short-Term Holder Supply in Loss (STH-SOPR) rose above 1.0.
💼 More than 15,000 BTC sold for less than the cost basis in 72 hours
📉 A big rise in money coming into exchanges like Binance, Coinbase, and Kraken
Whale wallets stayed mostly inactive, which suggests that panic selling was driven by retail.
“This pattern is typical of emotional retail investors leaving after small dips, usually before a big rebound,” said Lennart Jansen, an analyst at CryptoQuant.
Is this a correction or something more serious?
Bitcoin is now between $106,000 and $107,000, after briefly reaching $113,000 earlier this month. Some analysts think this is a healthy pullback, while others think it means the market is about to pull back even more.
Katie Stockton, managing partner at Fairlead Strategies, said, “We’re still in a broader uptrend.” “But this rush of short-term selling may need some time to cool off before BTC can reach higher highs again.”
Levels of support to keep an eye on:
$102,000—psychological and technical floor
50-day moving average: $98,500
$95,000—Place where the breakout happened before
💡 Why Did They Sell?
Short-term investors may have been scared by:
The U.S. Federal Reserve’s hawkish tone on inflation
Strengthening the U.S. Dollar Index (DXY)
🗓️ Worries about the upcoming release of BTC for Mt. Gox creditors
🧠 Social media behavior after people felt bad about the market
Even though the market is down, the fundamentals are still strong. Bitcoin’s hashrate is close to all-time highs, ETF inflows are still positive, and institutions are still buying more Bitcoin.
🚨 What the Market Looks Like
Even though there is still short-term turbulence, long-term bulls are still confident. Reports say that institutional trading desks are buying the dip. Several macro signals, like the 200-day moving average going up and the strong RSI divergence, suggest that the market may bounce back.
James Lavish, CIO of the Bitcoin Opportunity Fund, said, “Retail is selling, but smart money is accumulating.” “This isn’t the end.” It’s the start of the next leg up.
As Bitcoin changes over time as both a speculative asset and a macro hedge, times like these test people’s faith but also give them chances.
