Can Bitcoin reclaim $95,800 as short-term holders take profits?
Since hitting $108k, Bitcoin [BTC] has struggled to maintain an upward momentum. As such, BTC has traded in a consolidation range between $92k and $97k.
At the time of writing, Bitcoin is trading at $93,905, marking a 2.18% decline on the daily charts. Additionally, the cryptocurrency has dropped by 12.37% on the weekly charts.
This dip has left most short-term holders at a loss, including those who bought Bitcoin in November. The widening loss margins among short-term holders have analysts deliberating over the next move.
Bitcoin’s LTH vs STH net position change
According to Cryptoquant, the 30-day net position change for long-term holders (LTH) has turned negative hitting -750k BTC.
The net position change for short-term holders (STH) surged to a positive value of +750k BTC.
While short-term investors continued to accumulate as BTC prices surged, the STH SOPR turned negative. This indicates that STH holders are operating at a loss.
With short-term holders at a loss, they have two options: hold and wait for BTC prices to recover, or buy at lower prices. If STH demand remains strong and long-term holder (LTH) demand is neutral or positive, it could create positive momentum for BTC.
However, if STH decides to sell at a loss, it could create selling pressure and drive prices further down. The direction that short-term holders take will affect BTC’s price trajectory
