This week, Bitcoin faced challenging economic conditions. A conflict in the Middle East and expectations ahead of the FOMC have led to a decline in investor interest.
Bitcoin sales by short-term holders
Amid current market conditions, short-term holders (STHs) of Bitcoin have sold over 15,000 BTC at a loss. According to CryptoQuant data, 959 BTC were transferred to exchanges at a loss on Monday, which grew to 16,700 BTC by Wednesday. This phenomenon reflects STHs' behavior, who often panic and sell their assets during price declines.
Market situation analysis
There is an increase in STH activity during market downturns. When they exit their positions, coins often transition to long-term holders (LTHs), contributing to market stabilization and the formation of a more resilient price base. The overall supply held by STHs continues to decline, creating opportunities for asset accumulation.
Price forecasts and potential bottom
Bitcoin is currently navigating a 'blind spot' in the market. Data for short-term holders indicates a support range between $97,000 and $94,000, which could serve as a local bottom. Easing selling pressure opens opportunities for new purchases and sets the market up for potential growth.
The situation in the Bitcoin market remains uncertain, and despite the active sell-off by short-term holders, potential scenarios predict price stabilization in the near future.
