Bitcoin Faces Pressure as Short-Term Holders Capitulate, $5.69B in Losses Hit Exchanges

Bitcoin is trading at a critical support level after a sudden reversal from its all-time high of $124,500. Short-term holders have capitulated, with $5.69 billion in losses hitting exchanges in 48 hours. The market is volatile, with bulls and bears locked in a battle for momentum. Bitcoin's ability to stabilize above $115K-$113K will determine the short-term trajectory, with a rebound toward $120K+ possible if buyers step in aggressively, or a deeper retracement if it fails to defend current levels.

Bitcoin (BTC) has experienced a significant downturn, trading at a critical support level after a sharp reversal from its all-time high of $124,500. The sudden reversal underscores the sharp rise in volatility, with bulls and bears locked in a battle for momentum. Over the past 48 hours, short-term holders (STHs) have capitulated, with $5.69 billion in losses hitting exchanges, according to CryptoQuant analyst Maartunn [3]. This marks one of the deepest loss-driven moves in more than a month, signaling a shift in market sentiment.

The current market volatility is a result of Bitcoin breaking below pivotal support levels, causing concern among traders. The price has slipped below $115,000, a level that had previously acted as a key support. The market sentiment has become increasingly fragile, with liquidity tightening and uncertainty surrounding broader risk assets. While some see this move as a bearish warning, others argue it presents an entry opportunity if BTC price quickly reclaims lost ground.

The latest pullback has caused trouble for the Bitcoin price rally, with the token breaking below the pivotal support range. The levels are expected to head towards $110,000 support in the next few days, which may trigger panic among market participants. However, this pullback may attract fresh liquidity, triggering a strong BTC price rally as the star token appears to be at the foothill of a massive explosion.

According to the latest Bitcoin price analysis, the BTC price has broken the rising wedge and is squashing all the sellers at the moment. With this, the price may experience an extended descending trend, driving the price close to $110,000. However, in a wider perspective, a breakout from the rising wedge results in a strong rise in the price after experiencing a correction. Therefore, the BTC price seems to be due for a huge upswing in the coming days [1].

The market sentiments have become more volatile than the crypto markets, which have been fluctuating with a huge margin. When the BTC price surged high and reached a new ATH, sentiments turned greedy, and as soon as the levels fell below $113,000, traders turned bearish on Bitcoin. The data from Santiment indicates that the crowd began to panic sell soon after the prices dropped. However, historically, these have turned out to be one of the biggest buying opportunities ever [1].

The DMI had undergone a bearish crossover earlier but in no time, the DI displayed a bearish divergence, suggesting the possibility of a bullish crossover. On the other hand, the Supertrend is acting as a support right now and until the price trades above the range, Bitcoin is expected to thrive. In the wider perspective, the Bitcoin (BTC) price remains under the bullish influence with a possibility of forming a new ATH above $125,000 in the next few weeks [1].

The latest price action reflects increased volatility within a 24-hour intraday range of $114,706 to $118,514, while trading volume reached $34.93 billion. Bitcoin pulled back from a local high of $124,517, reflecting a broader pattern of lower highs that signals growing bearish momentum. The decline is pressing back toward the $115,000 level—a zone that now acts as critical short-term support. Beneath this range, the $111,919 region remains the most immediate historical support, having previously served as a bounce zone earlier in the month [2].

The 1-hour chart reinforces a short-term bearish bias, with a strong rejection at $118,626 that prompted a steep move down to $114,706. Since then, price action has consolidated within a narrow band between $114,500 and $115,500, suggesting indecision and reduced participation at the lows. This structure typically precedes breakout scenarios, with downside more likely if the $114,500 support gives way on high volume. If support holds, a limited rebound is possible, but one would likely face resistance near $116,000–$117,000 [2].

Momentum indicators further support a cautious outlook. The relative strength index (RSI) sits at 45, the stochastic oscillator at 35, and the commodity channel index (CCI) at −38—all of which indicate a neutral market with no immediate directional bias. However, the momentum oscillator at −1,641 and the moving average convergence divergence (MACD) level at 536 are both issuing bearish signals, suggesting declining strength. The average directional index (ADX) at 21 confirms a weak trend environment, while the Awesome oscillator at 685 remains neutral on Monday. Moving averages (MAs) reinforce the prevailing downward pressure. All 10-day to 50-day exponential and simple moving averages are aligned with negative trend signals, including the exponential moving average (EMA) at $117,516 and the simple moving average (SMA) at $118,381 [2].

Longer-term indicators provide some support: the 100-day and 200-day EMAs and SMAs are issuing positive trend signals, reflecting bullish strength in the broader time frame. This divergence highlights that while short-term sentiment remains bearish, long-term structure remains intact. In summary, bitcoin faces a challenging technical environment with downside risks growing in the short term. The $114,500–$115,000 zone is a key battleground, and its resolution will dictate near-term direction. Buyers may find opportunities in the $112,000–$113,000 region, while sellers remain in control below $119,000. A decisive move above $120,000 could shift momentum, but until then, caution prevails [2].

Bitcoin's ability to stabilize above the $115K-$113K support zone will likely determine the short-term trajectory. If buyers step in aggressively, a rebound toward $120K+ could materialize. However, failure to defend current levels may leave BTC vulnerable to a deeper retracement before any attempt to retest its all-time highs.

References:

[1] https://coinpedia.org/price-analysis/bitcoin-btc-price-breaks-critical-support-is-this-a-warning-sign-or-a-huge-buying-opportunity/
[2] https://api.news.bitcoin.com/wp-json/bcn/v1/post?slug=bitcoin-price-watch-bulls-defend-114-7k-as-bearish-momentum-builds
[3] https://bitcoinist.com/bitcoin-sth-capitulate-5-69b-losses-hit-exchanges/