news 
Bitcoin’s Short-Term Holders Are Under Pressure – Worst Yet to Come?
The cryptocurrency market is known for its volatility, and the recent downturn has caught many investors off guard. Bitcoin (BTC), in particular, has been affected by this volatility, with its price plummeting to a 5-month low of $74k.
As a result, short-term holders are under immense pressure. Their aggressive exit from the market is a concerning sign that could lead to further losses for the cryptocurrency.
Historically, when the Short-Term Holder SOPR (STHSOPR) falls below 1.0, it indicates capitulation and panic selling among short-term investors. In fact, a similar scenario played out in 2024, where a sharp drop in STHSOPR led to significant price corrections.
Currently, the STHSOPR has dropped below 1.0, suggesting that these investors are realizing losses and rushing to exit the market. This sudden exodus from the market will likely lead to further downward pressure on Bitcoin’s price.
The data suggests that short-term holders are not just panicking, but they’re actually selling aggressively. The number of netflows from exchanges has been consistently positive over the past 24 hours, indicating that there are more sellers than buyers in the market.
To make matters worse, even whales (large investors) have joined the selling bandwagon, with their netflow to exchange ratio spiking to 0.53% over the last day. This sudden increase in selling pressure from both short-term holders and whales is a clear indication that confidence has vanished in the cryptocurrency market.
The current supply of Bitcoin is on the rise, as indicated by the sharp spike in the stock-to-flow ratio (SFR) over the past 24 hours. As the demand remains stagnant, this increased supply could lead to further price drops. The data suggests that if the current trend persists, we may see Bitcoin’s price drop even lower, potentially dipping down to $71,858.
On the other hand, a bullish reversal would require Bitcoin to reclaim its psychological level around $80k.
Source: https://ambcrypto.com/bitcoins-short-term-holders-are-under-pressure-worst-yet-to-come/
