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11 hour ago
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63K Bitcoin Moves from Long-Term Holders to Short-Term Buyers

Bitcoin is experiencing significant selling pressure, trading below $90,000, with fears of a new bear market emerging. Analysts point to a potential peak in early October around $126,000, leading to a shift towards risk-off positions among investors.

  • A CryptoOnchain report highlights a historic movement of 63,000 BTC from long-term holders (LTHs) to short-term holders (STHs), indicating heavy outflows from LTH wallets.

    • Bitcoin Long-Term Holder Net Position Change | Source: CryptoQuant

  • This pattern suggests late-stage bull market behavior, where LTHs take profits and STHs buy at elevated prices.
  • The current dynamic shows LTHs distributing Bitcoin while STHs accumulate, a common occurrence in late bull markets but raises risks if demand doesn't absorb supply.

Technical Analysis

  • Bitcoin aims to stabilize around $87,000 after a sell-off hit $85,946. It now tests the 100-week moving average, a key support during past retracements.

    • BTC holding key support | Source: BTCUSDT chart on TradingView

  • The breakdown from the $110K–$100K zone increased selling pressure, with high-volume distribution dominating recent weeks.
  • Maintaining above $83K–$86K is crucial for the bull structure; a fall below could lead to further declines toward $56K–$60K.

Overall, Bitcoin's current market behavior reflects uncertainties with both potential risks and opportunities as it navigates this critical phase.