Bitcoin News

Story: Bitcoin Short-Term Holder Panic-Sell Signals Potential Recovery

By Julie Binoche

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Panic Selling by Short-Term Holders (STHs). In the wake of the Bybit hack, many short-term Bitcoin holders experienced substantial losses,…

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Capitulation and Local Bottom. The Short-Term Holder Profit & Loss (P&L) to Exchanges Sum chart reflected massive losses…

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Liquidity Shift and Reduced Selling Pressure. Bitcoin’s liquidity situation also paints an interesting picture.

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Netflows and Potential for Recovery. In addition to the declining active supply, Bitcoin’s exchange netflows have shown a notable…

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Conclusion: A Shift Toward Recovery?. While Bitcoin continues to experience short-term volatility, the combination of panic-selling from…

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Bitcoin has experienced significant volatility following the Bybit hack, with short-term holders (STHs) panic-selling their holdings.

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In the wake of the Bybit hack, many short-term Bitcoin holders experienced substantial losses, prompting them to sell off their holdings.

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The Exponential Moving Average (EMA) indicated a bearish crossover, with the 9-period EMA dipping below the 26-period EMA, signaling a short-term downward momentum.

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The Short-Term Holder Profit & Loss (P&L) to Exchanges Sum chart reflected massive losses among short-term holders, especially between $90K and $95K in the aftermath of…

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Such capitulation, where distressed holders unload their positions, often signals the end of a sell-off and the formation of a short-term bottom.

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Bitcoin’s liquidity situation also paints an interesting picture. The 90-day active supply of Bitcoin has been steadily declining, falling from 6 million BTC in late 2024 to…

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This decline mirrors trends seen in 2018, when a decrease in active supply preceded a stabilization in Bitcoin’s price.

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In addition to the declining active supply, Bitcoin’s exchange netflows have shown a notable reversal. In the last 24 hours, there was a sharp outflow of -546.

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This behavior was similar to mid-2021, when large outflows from exchanges preceded a price rebound. The 24-hour netflow change of +269.

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While Bitcoin continues to experience short-term volatility, the combination of panic-selling from short-term holders and declining exchange netflows points toward a potential…

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