Bitcoin News Today: Bitcoin faces correction risks as short-term holders dump 21,200 BTC amid bullish trend doubts

Short-term Bitcoin holders have recently liquidated a significant portion of their holdings, sending 21,200 BTC back to crypto exchanges amid a price correction. The move follows Bitcoin’s recent pullback from an all-time high of $124,457.12 to a current range of $110,000 to $112,000, signaling increased selling pressure among investors who have held the asset for less than a year [1]. The volume of BTC being returned to exchanges has raised concerns about the sustainability of the bullish trend that had driven the market earlier in the year.

The price action has been marked by sharp volatility, with Bitcoin dropping to $115,000 before bouncing back to $118,000, only to fall further to $113,000. Analysts note that this erratic movement suggests a possible shift in market sentiment. One silver-tongued analyst has predicted that the asset is on the cusp of a significant correction, potentially pushing the price below the $100,000 level and into a consolidation phase between $90,000 and $95,000 [1]. This correction, the analyst argues, is likely to be triggered by the Federal Reserve’s rate cut announcement in September, a historical factor that has caused bearish pressure in both traditional and crypto markets.

Further evidence of a distribution phase is highlighted by another analyst, who points out that large whales are actively offloading their BTC holdings and ETF outflows are increasing. Publicly listed companies have also largely ceased their buying activity, suggesting a broader shift in market behavior [1]. The analyst notes a critical CME gap around the $94,000 to $96,000 level, which may act as a key support or resistance area once the correction phase stabilizes.

Despite the current bearish momentum, some analysts remain cautiously optimistic. They argue that once the correction completes, bullish indicators could reemerge, potentially leading to a new wave of accumulation and a push toward all-time highs above $150,000. The market remains in a state of anticipation, with traders and investors watching for signs of stabilization and renewed buying interest.

Source: [1] Short-Term Holders Sent 21,200 BTC Back to Crypto Exchanges as BTC Enters Distribution Phase (https://cryptonewsland.com/short-term-holders-sent-21/)