Short-Term Bitcoin Holders Panic Sell: Here’s Why It Might Be Great News For BTC

Name	Symbol	Market	Market Cap ($)	Algorithm
Bitcoin	BTCUSD	Crypto	1,919,246,648,948	SHA-256d

Name

Symbol

Market

Market Cap ($)

Algorithm

Bitcoin

BTCUSD

Crypto

1,919,246,648,948

SHA-256d

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-183.94	-0.19%	97,022.82	97,022.83	97,027.57

Price Change

Price Change %

Current Price

Bid Price

Offer

-183.94

-0.19%

97,022.82

97,022.83

97,027.57

High Price	Low Price	Open Price	Prev. Close	52 Week Range
97,387.98	95,825.60	97,010.76	97,206.76	38,501.00 - 108,388.88

High Price

Low Price

Open Price

Prev. Close

52 Week Range

97,387.98

95,825.60

97,010.76

97,206.76

38,501.00 - 108,388.88

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	10:56:13	0.000029	97,022.82	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

10:56:13

0.000029

97,022.82

USD

Price x Volume	Volume	Base Symbol	Related Pairs
232,916,597.87	2,410.14	BTC	BTCEUR	BTCGBP	ETHBTC

Price x Volume

Volume

Base Symbol

Related Pairs

232,916,597.87

2,410.14

Short-Term Bitcoin Holders Panic Sell: Here’s Why It Might Be Great News For BTC

08/10/2024 9:00am

NEWSBTC

Amid the Bitcoin gradual recovery in price, the asset seems to have been experiencing an interesting market trend lately, suggesting a shift in its supply distribution. According to a CryptoQuant analyst, who goes by the pseudonym ‘IT Tech,’ BTC’s recent price fluctuations have led to short-term holders (STHs), labeled as “weak hands,” exiting the market, potentially passing their holdings to long-term investors or “strong hands.” Related Reading: Is The Worst Over For Bitcoin? Analyst Suggests Local Bottom May Be Here Short-Term Holders Exit Equals Market Opportunities The analyst’s post, “Weak Hands & Bitcoin Dips: Uncovering Short-Term Holders’ Behaviour During Price Drops,” outlined how Bitcoin’s price movements are closely tied to STH behavior. The analyst explained that when Bitcoin faces a dip, these short-term holders typically panic and sell off their assets, often at a loss. This pattern is represented by increased purple bars in the chart shared by the analyst, signalling a heightened sell-off during market downturns. As STHs exit their positions, these sell-offs often transfer Bitcoin to stronger hands—long-term holders more likely to accumulate and hold through market volatility. The CryptoQuant analyst reveals that as these STHs continue to sell their holdings in reaction to market dips, their overall supply is reducing, resulting in reduced selling pressure, potentially stabilizing Bitcoin’s market price. IT Tech emphasized that understanding the behavior of these short-term holders can be pivotal in identifying “market bottoms.” The theory is that as STHs exit the market during downturns, it signal the possibility of accumulation opportunities. In simpler terms, the analyst explained that as Bitcoin moves to holders less likely to sell at short-term price drops, the market is more likely to find a “price floor,” possibly setting the stage for future bullish momentum. Weak Hands & #Bitcoin Dips: Uncovering Short-Term Holders’ Behavior During Price Drops “The overall STH supply has declined, especially after major sell-offs, suggesting weak hands are gradually exiting. This reduction in selling pressure can create opportunities for… pic.twitter.com/mp5K6MrSOm — CryptoQuant.com (@cryptoquant_com) October 7, 2024 Bitcoin Market Performance Following a notable dip to $60,000 earlier in the month last week, which lessened investor’s hope on a bullish October termed “uptober” Bitcoin is finally now seeing a noticeable price recovery reclaiming the $64,000 price mark. Related Reading: Bitcoin Price Ready to Resume Gains: Can the Uptrend Return? Particularly, at the time of writing, Bitcoin trades for $64,174 up by 2.7% in the past day. This uptick is reflected in the global crypto market cap, which has also seen a rise of 1.8% over the same period to a current valuation of $2.33 trillion. Featured image created with DALL-E, Chart from TradingView

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

BTCUSD Bitcoin