Urgent Alert: Bitcoin Price Dip Possible After 15K BTC Sold at Loss by 'Weak Hands'

Are you watching the Bitcoin price action closely? This week, a significant amount of selling activity by what are often called ‘weak hands’ has caught the attention of market observers. Specifically, 15,000 Bitcoin were moved at a loss by short-term holders, raising questions about the immediate future of the market and whether we could see a BTC price dip.

Short-term Holders Sell Bitcoin at a Loss

Recent onchain data reveals a notable trend: short-term Bitcoin holders (STHs) have been selling. Over the past week, approximately 15,000 BTC held by these less experienced market participants were transacted at a loss. This activity picked up momentum, with significant transfers to exchanges coinciding with price drops.

This behavior is typical of STHs, who often react to price downturns by panic-selling to cut losses. When these ‘weak hands’ exit their positions, their coins frequently move to long-term holders (LTHs), often called ‘strong hands’. This transfer can help stabilize the market and build a more resilient price base.

Onchain Data Provides Key Insights

Analysis of onchain data offers a clearer picture of current market dynamics. The selling pressure from STHs has been evident over the past month. However, a key insight is that most of this selling volume has been absorbed by LTHs. This absorption dynamic is likely playing a crucial role in keeping the Bitcoin price trading above certain levels.

Furthermore, data indicates a persistent negative spot volume delta recently, signaling ongoing selling pressure in the spot market despite recent price bounces that occurred on low buying volume. This suggests that while the immediate downside pressure might be easing slightly, the market may require renewed buyer demand to sustain an upward move.

Is a BTC Price Dip Under $100K Next?

Considering the current market structure and selling pressure, where could the Bitcoin price find support? Onchain cost-basis data for short-term holders points to a potential support range between $97,000 and $94,000. This zone is identified as a possible local bottom.

A move into this range could involve sweeping key liquidation levels positioned below the psychological $100,000 mark. It would also test a fair value gap (FVG) and a daily order block within the $97,000 to $94,000 levels, areas often watched by traders for potential price reversals or consolidation.

Market Analysis and Outlook

Based on the recent selling by short-term holders and the insights from onchain data, the market is navigating a period of uncertainty. External factors, such as geopolitical events and upcoming economic news (like FOMC decisions), also contribute to investor caution, leading many to remain sidelined.

While the absorption of STH supply by LTHs is a positive sign for long-term stability, the immediate outlook suggests the possibility of further price consolidation or a short-term dip to test key support levels identified by onchain metrics. The $97,000 to $94,000 range is a critical area to watch. A successful defense of this zone could pave the way for a future rally, but failure could signal deeper corrections.

Key Data Points:

15,000 BTC sold at a loss by STHs this week.
Selling volume largely absorbed by LTHs.
Negative spot volume delta persists, indicating selling pressure.
Potential support identified between $97,000 and $94,000 based on STH cost basis.

This analysis is for informational purposes and does not constitute investment advice. Always conduct your own research before making investment decisions.

In conclusion, the recent selling by short-term Bitcoin holders highlights typical market behavior during price weakness. While long-term holders are stepping in to absorb this supply, onchain data suggests that the market might test lower support levels before finding a stronger base. The $97,000-$94,000 range is a critical area that market participants will be closely monitoring in the near term.