Will Bitcoin return to $95,800? It depends on whether short-term holders sell or not
Short-term holders (STH) have increased their net position in Bitcoin by 750,000 BTC, while long-term holders (LTH) have dropped to negative values.
Bitcoin has recently dropped 12.37% in the past week, trading between $92,000 and $97,000. Now, the trading price of Bitcoin is $93,905, down 2.18%.
This drop has mostly led to losses for short-term holders, including those who bought Bitcoin in November. They are incurring more and more losses, and analysts are pondering what to do next.
According to data from Crypto Quantum, the 30-day net position of long-term holders has turned negative, decreasing by 750,000 BTC. However, the Bitcoin price has remained relatively stable without significant drops. Why? Because short-term holders have been buying continuously, even as Bitcoin reaches new highs.
Currently, short-term holders have increased their net position by 750,000 BTC, but they are now selling at a loss, with the SOPR indicator turning negative.
Short-term holders now have two options: either hold on and wait for prices to rise, or buy a bit more at a lower price. If they still want to buy, and long-term holders are also willing to buy, then Bitcoin could still rise.
But if short-term holders sell at a loss, the pressure will increase, and prices will likely drop. The choices of short-term holders directly determine the price trend of Bitcoin.
In the past week, the supply of Bitcoin on exchanges has surged, indicating that many short-term holders are selling. They are selling even more than long-term holders, with 56 million coins sold in a single day and 9 million coins sold over the week.
This means that speculation among short-term holders is intense, with some even selling at a loss just to buy back at a lower price.
Short-term holders are currently dominating the market; if they sell off in large quantities, the price of Bitcoin will likely drop.
If short-term holders continue to sell at a loss, lacking confidence, Bitcoin could drop to $92,130. But if they still want to buy, Bitcoin could potentially return to $95,800.
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