In the past 24 hours, the price of BTC has rebounded slightly, up 1.20%, and is now trading around 62,000. But behind this increase, the market is not calm. Did you know? If the price of Bitcoin is still lower than the number in the minds of short-term holders-$63,000, it may trigger a selling storm.
With this recent trend, BTC has fallen 56.1% in a week. Although it has risen a little now, those short-term holders are still panicking. If the price of BTC does not return to $63,000, these people may rush to sell to avoid losses.
Why are short-term holders so important? Because they hold BTC for less than 155 days, once they feel that the price is not right, they will sell it quickly. In this way, the pressure to sell in the market is great, and the price may continue to fall, and even trigger a large-scale liquidation of leveraged positions, exacerbating the decline.
Therefore, BTC must quickly regain the lost ground of $63,000 to give short-term holders some confidence, so that they can continue to hold and look forward to price increases.
The fund flow ratio has dropped from 0.08 to 0.05 since September 30. This means that fewer BTC are being transferred to exchanges, and investors are more willing to keep their assets in private wallets rather than sell them. As for how to look at this, everyone has their own opinions, and they may all be in a wait-and-see state.