Bitcoin Short-Term Holders Sell 833,000 BTC Amid Price Correction

Bitcoin (BTC) recently experienced a significant price correction, approaching the psychologically important $100,000 mark. This correction triggered a notable shift in the behavior of short-term holders (STH), who are investors holding BTC for less than 155 days. These holders are typically more sensitive to market volatility and price movements, often reacting by selling during corrections or periods of uncertainty.

According to a recent analysis, the net position of Bitcoin STH has turned sharply negative over the past month. This shift occurred despite BTC maintaining a price above the $100,000 level. The cumulative net position change among short-term holders during this pullback was recorded at -833,000 BTC. This figure is comparable to the net position change of around -977,000 BTC observed during the April crash, indicating a similar level of selling pressure.

The current behavior of STH closely resembles the activity seen during BTC’s brief drop below $80,000 in April 2025, when the digital asset bottomed out at $74,508. This suggests that STH have become more sensitive to market movements, with the recent dip around the $100,000 mark being enough to trigger renewed fear among this group of investors.

Despite the selling pressure from STH, there are signs that BTC may be experiencing a reversal. After reaching its latest all-time high (ATH) of $111,814, BTC regained strength over the weekend, indicating a possible reversal. Seasoned crypto analyst Ali Martinez noted that BTC has broken through the key resistance level at $106,600. Martinez predicted that Bitcoin could rally to $108,300 or even $110,000 if current momentum continues.

Fellow crypto analyst Rekt Capital shared a Bitcoin daily chart, noting that the cryptocurrency not only broke out of its two-week downtrend but may now be turning that former resistance into a new support level. Several technical indicators also point to continued bullish momentum, with Bitcoin’s Hash Ribbons recently flashing a prime buying signal. Additionally, on-chain data suggests that BTC could experience a sharp upward move in the short term, potentially driven by a negative funding rate on Binance. A prolonged period of negative funding rates often sets the stage for a short squeeze.

However, there are some red flags to consider. Recent data shows that long-term holders are gradually exiting the market, which could add volatility to the current rally. At the time of reporting, BTC was trading at $107,627, up 1.9% in the past 24 hours. The influx of retail investors could further contribute to market volatility, making it crucial for investors to remain cautious and monitor market developments closely.