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Bitcoin in free fall: Short-term investors are very worried!
Bitcoin Falls Below $99,000: Analysts Warn of Possible Correction and Market Stress for Short-Term Investors.
Bitcoin in free fall: Short-term investors are very worried!
The Bitcoin price has experienced a significant decline in the last few days and recently fell below the short-term realization price of $99,000. This price reflects the average acquisition cost of BTC acquired over the last 155 days. Loud InvestX This development has created tensions among short-term investors.
The current on-chain metrics for Bitcoin show worrying signals. The STH-MVRV (Short-Term Holder-Realized Value) has fallen to almost 1. A value below 1.0 indicates that the recently acquired Bitcoin is unprofitable for the short-term holders and they are facing unrealized losses on average. What is particularly dramatic is that the STH MVRV fell to 0.82, meaning that short-term investors on average suffered a loss of around 18%. Historical perceptions show that such value is associated with market stress and capitulation, further adding to concerns as to how CoinDesk reported.
Stable whales and bearish buying pressure
Despite signs of uncertainty among short-term holders, historic Bitcoin whales are displaying a wait-and-see attitude. Transactions above $100,000 remain stable, indicating that major investors are currently adopting a cautious market strategy. However, this activity is comparable to that of 2020 and a far cry from the highs during the 2021-2022 boom.
Without whale participation, the Bitcoin price decline could be based on weaker liquidity and more fragile support. Bitcoin’s RSI (Relative Strength Index) has fallen to 41.5 and is approaching the oversold zone. In addition, the OBV (On Balance Volume) continues to show falling values, indicating declining buying pressure.
The consequences for the market
There is a possibility of a deeper correction if the support zone does not hold. Such downward dynamics can lead to capitulation for many short-term holders, which historical patterns confirm. According to Glassnode data, similar STH MVRV lows have often been harbingers of market bottoms and reversals in the past.
The long-term investors, on the other hand, have increased their holdings by around 500,000 BTC since February, while short-term holders have sold over 300,000 BTC due to profit-taking and capitulation. This divergence shows that long-term holders are accumulating more Bitcoin than short-term holders are dumping, indicating a potential rethink in the market.