Bitcoin's price continues its downward trend, dropping by 1.4% over the past week, causing panic among short-term investors.
Current Market Situation
Bitcoin's value hit a low of $81k, marking a 1.40% fall on the weekly charts and a 0.51% drop on the daily charts. These price fluctuations have resulted in rising volatility, causing a sense of panic among short-term investors.
Panic and Fear Among Investors
Data from CryptoQuant suggests that short-term Bitcoin investors are in a state of extreme panic and fear. Since February, these investors have been consistently selling their coins at a loss, indicating a lack of market confidence. The Short-Term Holder's SOPR (STH SOPR) sits below 1, suggesting that most on-chain movements are at a loss. This trend was also observed during the declines in March.
Market Behavior and Implications
Bitcoin's exchange netflow indicates that investors have turned to aggressively selling. This has resulted in two consecutive days of positive netflow for the first time in 12 days. This increased selling activity suggests a state of panic among short-term investors. This trend is not limited to retail traders but also extends to whales. If the prevailing fear continues, Bitcoin could see further losses, but a drop might also be seen as a buying opportunity.
In the context of fear and panic, Bitcoin's market remains highly volatile. The selling pressure from both retail investors and large holders significantly impacts prices. Further losses may occur unless market confidence is restored.
