Bitcoin Short-Term Holders Capitulate: 30K BTC In Realized Losses Over 24 Hours

Bitcoin faces a critical juncture as it attempts to stabilize after dropping below the $115,000 mark earlier this week. Currently, BTC is trying to maintain the $110,000 level, crucial for short-term stability. The recent downturn has increased caution among investors due to potential further corrections.

The crypto market sentiment has turned cautious from previous optimism amid rising volatility and diminishing momentum.
Altcoins have also experienced significant declines alongside Bitcoin's movements.

Short-Term Holders (STHs) Experience Losses

Short-term holders realized losses of around 30,000 BTC in one day, with many recent buyers facing steep losses.
Analyst Darkfost suggests this capitulation can cleanse the market by eliminating excessive leverage and weak positions, potentially strengthening future rallies.

Despite challenging macroeconomic conditions, analysts remain optimistic about Bitcoin's long-term position due to factors like institutional adoption and regulatory progress.

Price Analysis: Support Levels Tested

Bitcoin's price shows weakness after falling below $115K, testing support near $113K.
Currently trading below the 50-day moving average, the 100-day SMA at $113,337 acts as key support.
A move below $113K could lead to testing the $110K psychological level where buyer interest may increase.
Momentum indicators suggest a corrective phase but not a full reversal, with higher lows since June still holding.

BTC testing key support level

Traders are watching whether Bitcoin can stabilize above current support or if broader market uncertainty will lead to further selling pressure.