Bitcoin News Today: Short-Term Bitcoin Holders Sell 22K BTC at Loss After 7.6% Dip

Bitcoin has experienced a 7.6% pullback from its recent all-time high of $116,500, now trading below $116,000, prompting short-term holders to offload their positions at a loss. Onchain data from CryptoQuant and Glassnode reveal that over 22,000 Bitcoin units held by investors for less than 155 days have been moved to exchanges over the past three days, with the bulk of the outflow concentrated among those selling at a loss. This activity marks a significant behavioral trend where short-term speculators panic-sell during dips, often preceding extended correction phases [1].

The most recent large-scale loss-realizing event by short-term holders (STHs) occurred in January 2025, which coincided with a major market correction. Analyst Kripto Mevsimi from CryptoQuant noted that the STH-SOPR (Spent Output Profit Ratio) multiples have now fallen below 1, the first time since January 2025, indicating renewed pressure from weak hands exiting the market at a loss [1]. Historically, such drops have either acted as a healthy reset—flushing out weak hands and setting the stage for more sustainable rallies—or signaled the beginning of a prolonged bearish phase.

Bitcoin’s support between $100,000 and $110,000 has been a key focal point for traders. This level has held firm for over 100 days since the cryptocurrency crossed above $100,000 in May 2025. Trading firm Swissblock stated that breaking through this range would be a significant challenge for the bears and could lead to deeper price corrections [1]. AlphaBTC, a well-known Bitcoin analyst, suggested that a close below $114,700 could trigger a drop toward the $110,000–$112,000 demand zone.

Market sentiment is shifting toward caution, with prediction platform Polymarket assigning a 73% probability that Bitcoin will close at $114,000 by the end of the week. The likelihood of a close below $112,000 stands at 39%, with 18% and 16% odds for a drop toward $110,000 and $108,000, respectively [1]. These probabilities reflect growing uncertainty among investors, particularly in the lead-up to key macroeconomic events such as the Jackson Hole symposium, where Federal Reserve Chair Jerome Powell is expected to address monetary policy.

Despite the recent selling pressure, some analysts view the current dip as a necessary correction for the market. Cointelegraph reported that Bitcoin could remain in a consolidation phase as investors take profits below all-time highs, suggesting that the current volatility may be part of a larger, more structured market cycle [1]. However, if the selling continues and Bitcoin fails to reclaim key resistance levels, it could signal a breakdown in momentum and open the door for more significant price declines.

Source: [1] Short-term Bitcoin Holders Panic Sell 20K BTC This Week (https://cointelegraph.com/news/will-bitcoin-price-fall-to-110k-short-term-holders-sell-22k-btc-at-a-loss)