Why is $BTC down today? THIS group starts to cash out - AMB Crypto Analytics

Bitcoin (BTC) surged above $60K but quickly retraced to $58,580. The decline may be linked to short-term holders (STHs) locking in profits after a six-day rally, similar to past cycles where STHs sell as prices peak, leading to a sharp decline. This pattern, coupled with whales reducing their holdings, intensified selling pressure.

The MVRV momentum has been declining since BTC fell below $66,750 in June. If support at $58,100 fails, a drop to $55,000 could occur. A strong bull rally may only emerge if long-term holders (LTHs) accumulate or if macroeconomic factors, like a Fed rate cut, shift momentum.

For a reversal, profit-taking must be replaced by renewed buying, potentially triggered by a deeper dip or favorable external conditions.