Key Summary:
Short-term Bitcoin holders sold off 15,000 Bitcoins at a loss this week.
On-chain data suggests that the bottom for Bitcoin prices may be in the range of $97,000 to $94,000.
Bitcoin (BTC) has remained relatively calm this week, as the armed conflict between Israel and Iran and uncertainty ahead of the Federal Reserve FOMC meeting led investors and traders to adopt a wait-and-see approach. Despite the market's calmness, CryptoQuant's on-chain data revealed a significant phenomenon—this week, short-term holders (STHs) moved over 15,000 Bitcoins at a loss.
According to Glassnode data, 959 Bitcoins were transferred to exchanges at a loss on Monday, which surged to 16,700 by Wednesday, coinciding with Bitcoin's price drop from $106,500 to $103,500. Analysts pointed out that this activity highlights a familiar behavioral pattern: short-term holders (often referred to as "weak hands") tend to panic sell during price declines, frequently realizing losses.
This selling behavior represents an increase in activity among short-term holders during market pullbacks. When these weak hands exit their positions, the coins typically transfer to long-term holders (LTHs), or "strong hands," which helps stabilize the market and form a more resilient price foundation.
Notably, the total supply held by short-term holders has decreased, especially after significant declines. This gradual reduction in selling pressure from weak hands creates opportunities for accumulation and may signal that a price bottom is forming.
Further insights can be gained from the net position change chart between short-term and long-term holders, which shows that short-term holders have been actively selling over the past month. It is particularly noteworthy that most of these sell-offs have been absorbed by long-term holders, a dynamic that may play a key role in maintaining Bitcoin's price above $100,000.
Data analysis platform Swissblock indicates that Bitcoin is currently navigating a "blind spot" in the market. The data shows that since June, the spot trading volume differential has remained negative, indicating that despite price rebounds due to low buying volume, selling pressure still exists. While downward pressure is easing, this suggests that a pullback may be prolonged before a significant breakout, depending on the recovery of demand.
Considering the potential for a short-term pullback before a rebound, the on-chain cost basis of short-term holders outlines a support range between $97,000 and $94,000. This range could become a local bottom, clearing key liquidation levels below $100,000 and re-testing the fair value gap (FVG) and daily order block between the aforementioned ranges.
Related: Russia states that 70% of crypto miners remain unregistered despite new regulations.
This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Original article: “Bitcoin (BTC) ‘Weak Hands’ Sell 15,000 BTC at a Loss: Will Bitcoin Prices Drop Below $100,000?”
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