Key Takeaways
Why are Bitcoin short-term holders under pressure?
They realized losses on 30,000 BTC, Sell-side Risk hit 0.00055, and unrealized profits nearly vanished.
What signals could shift Bitcoin’s trend?
Seller Exhaustion Constant declined, suggesting reduced supply. BTC may rebound if buyers defend $112,000 and push toward $115,896.
Bitcoin [BTC] broke below its consolidation band and touched a 12-day low of $111,000 before recovering. At press time, BTC traded at $113,213 after a 0.41% daily uptick, though it remained down 2.24% on the week.
Amid this increased market volatility, investors, especially Short-Term Holders (STHs), have suffered a massive hit.
Bitcoin short-term holders face heavy losses
As Bitcoin declined sharply, STHs panicked and started exiting the market. Inasmuch as so, STH’s Sell-Side Risk spiked, reaching a two-week high of 0.00055, indicating panic selling from the cohort.
Source: Checkonchain
CryptoQuant analyst Darkfost noted that STHs realized losses on nearly 30,000 BTC in a single day.
With BTC still below $114,000, unrealized profits for this cohort were nearly erased, while September buyers recorded heavier losses.
Source: CryptoQuant
Retail cohorts turn bearish
Interestingly, with Bitcoin struggling on its price charts, it seemed retail traders had largely given up. Checkonchain data showed all cohorts—Shrimps, Fish, and Crabs—posting net negative balance changes.
Source: Checkonchain
At press time, Fish Balance change was -6.6k BTC, while Crabs was -4.4k BTC, and -475 BTC for Shrimp.
With all retail holders recording a negative change, it implies they are selling more than buying, a clear bearish signal from the group.
There’s still hope
Still, signs of relief surfaced. Checkonchain’s Seller Exhaustion Constant declined, showing that short-term holders had already liquidated heavily over the last three days.
Source: Checkonchain
That metric, coupled with falling STH sell flows, suggested sellers were running out of coins to dump.
Such exhaustion often precedes stabilization or a relief bounce if demand strengthens.
Bitcoin’s near-term path
According to AMBCrypto’s analysis, Bitcoin saw a strong downtrend as STHs capitulated. However, sellers remained dominant, but exhaustion hinted at a rebound attempt.
Therefore, if the aforementioned market conditions persist, Bitcoin could face more pressure to the downside and potentially drop to its previous ATH around $112k. Failure to hold this level can send BTC to $111,645.
However, if selling exhaustion holds and demand picks up, Bitcoin may seek to reclaim $115,896.