7 hour ago
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Bitcoin Faces Demand Vacuum, Possible Drop Below $80,000 Looms
Bitcoin has faced multiple rejections at the $90,000 level and is consolidating around $87,000. Investors are waiting for a clear market direction, with bearish sentiment expected to dominate in the coming months.
Rising Short-Term Bitcoin Supply Indicates Bearish Sentiment
- Analyst Sunny Mom highlights the increase in short-term holders (STH), which typically suggests new market entry but currently indicates "passive bag-holding."
- Investors from the $120,000 rally in October now face unrealized losses, creating selling pressure during price rebounds.
- Net Realized Loss (NRL) spikes since October suggest ongoing capitulation as investors lock in losses.
Demand Vacuum May Lead Bitcoin Below $80,000
- Exchange reserves are low, indicating limited sell-side liquidity, while long-term holders (LTHs) are not selling, showing conviction remains strong.
- Macro uncertainty creates a demand vacuum as new buyers hesitate, leading to thin order books and potential sharp price drops.
- A predicted move below $80,000 could flush out weak hands, allowing larger holders to reaccumulate.
