Bitcoin's Short-Term Holders Sell 26k BTC, Demand Momentum Plummets 480k BTC

Bitcoin’s short-term holders are increasingly liquidating their assets, which is dampening demand momentum in the market. Recent data reveals that Bitcoin demand momentum has plummeted to -480k BTC, indicating a more aggressive selling pattern among short-term holders compared to long-term holders. This spike in short-term selling pressure is dampening Bitcoin’s ongoing price rally, highlighting a shift in market dynamics.

Over the past week, Bitcoin has witnessed substantial price increases, but most short-term holders now find themselves in profitable positions. Consequently, in the last 10 days, these holders have begun selling their Bitcoin for profit, as evidenced by the short-term holder spent output profit ratio (STH SOPR) remaining above 1 throughout this period. In light of rising profitability, short-term holders are seizing the opportunity to realize gains by exiting their positions.

Selling pressure from short-term holders has surged, reflected in the 30-day Demand Momentum’s sharp decline. The current negative reading of -480k BTC indicates that short-term holders are offloading Bitcoin at a higher rate than long-term holders. Data shows that short-term holders dominate inflows into exchanges. Over the past day, those holding Bitcoin for less than a month have sent more than 26k BTC to exchanges, a trend persisting over the previous week. This surge in selling activities is significant. Over the past three days, Bitcoin’s Spot Volume Delta (7DA SMA) turned substantially negative, reaching a net value of -301 million—a strongly bearish signal. This considerable drop indicates aggressive selling activities that are compromising spot demand, suggesting a potential reversal as buyers appear diminished.

The increase in profit-taking has pushed the Profit-Taker RSI (7D) to 82, indicating heightened realized profits and increasing sell-side pressure against rising Bitcoin prices. Currently, the market is under the influence of sellers, particularly short-term holders, while long-term holders are maintaining their positions and not contributing to the selling.

Bitcoin currently faces a critical juncture. The divergence between aggressive selling from short-term holders and the steadfastness of long-term holders suggests potential consolidation. With long-term holders absorbing selling pressure, Bitcoin may remain within a range of $92K to $95K. To achieve a surge above $96K, a significant easing of short-term holder selling is essential; otherwise, any bullish momentum could stall.