Bitcoin News Today: Short-Term Sellers Push Bitcoin Below $114,000 as On-Chain Metrics Signal Profit Taking and Loss Realization

Short-term holders have played a key role in Bitcoin’s recent price decline amid heightened volatility and uncertainty in the market. On-chain data indicates that these holders are selling at a loss, as Bitcoin’s price has dipped below critical support levels, raising concerns about further corrections. The Short-Term Holder MVRV (Market Value to Realized Value) ratio currently stands at 2.1, below the long-term average of 3.0, suggesting that short-term holders are undervalued relative to realized value. This is compounded by a SOPR (Spent Output Profit Ratio) above 1.1, indicating that short-term holders continue to take modest profits despite the ongoing decline [1].

The recent drop followed a record monthly close of $115,800, which had ignited bullish sentiment and signaled strong buyer conviction. However, a late-month pullback has pushed BTC-USD below $114,000, a level that could trigger deeper corrections if not quickly reclaimed. The CME gap fill to $114,322, while historically a precursor to rebounds, has not yet been followed by a decisive move back above $116,000. Analysts warn that failure to reclaim this level may lead to further declines toward $111,800 or even a retest of $104,000 [2].

Despite the short-term selling pressure, the broader market remains largely profitable. Over 90% of Bitcoin holdings are still in a net profit, with long-term holders and institutional investors maintaining or even increasing their positions. The institutional buying behavior during dips suggests a continued belief in Bitcoin’s long-term value. During the recent sell-off, the Bitcoin market witnessed the transaction of over $21.34 billion, with short-term holders responsible for around $18.24 billion. Significantly, 21,400 BTC changed hands at a loss, indicating anxiety among less experienced investors [1].

The broader crypto markets experienced substantial financial disruptions, with $700 million in long liquidations noted in derivatives markets. Institutional investors, however, reduced their OTC Bitcoin balances, reflecting a typical strategy of buying during market fear. This pattern mirrors previous short-term holder sell-offs, often marking local market bottoms. The current situation sees no regulatory action or significant commentary from industry leaders. Expert analytics suggest monitoring for further market stability [1].

On-chain metrics also reveal a pattern of accumulation among both retail and institutional participants. Exchange outflows and steady address growth suggest that investors are locking up Bitcoin rather than liquidating it. However, the recent price action has led to increased selling pressure from short-term holders, as reflected in the negative Bitcoin Coinbase Premium Index and elevated liquidation volumes [3].

The market remains divided on near-term price targets. According to analysts’ forecasts, CoinCodex projects a 12.5% rise to $133,300 by the end of August, while Wallet Investor anticipates a peak of $129,490. More conservative estimates, such as those from DigitalCoinPrice, project a modest 1.24% increase to $119,860 by mid-August. These divergences highlight the uncertainty and caution among analysts, especially near $112,000–$113,800, where support is expected to be tested [2].

Technical indicators also suggest potential for a rebound. A decisive close above $121,000 could confirm a breakout of the inverse head-and-shoulders pattern and accelerate the long-term uptrend. However, given the current short-term selling pressure and the potential for further macro-driven volatility, traders should remain cautious and monitor key resistance levels at $125,000 and between $133,000–$141,000 [4].

Source: [1] Bitcoin (BTC) Faces Major Critical Resistance: Key Levels (https://blockchain.news/flashnews/bitcoin-btc-faces-major-critical-resistance-key-levels-traders-need-to-watch-in-2025)

[2] Bitcoin Price Forecast for August 2025: Will BTC-USD Surge (https://www.tradingnews.com/news/bitcoin-price-forecast-target-of-133-usd-in-sight-as-support-holds-at-114-usd)

[3] Bitcoin Coinbase Premium Index Has Turned Negative (https://bitcoinist.com/bitcoin-coinbase-premium-negative/)

[4] Bitcoin Forecast for August 2025 : New All-Time High Ahead ? (https://investx.fr/en/crypto-news/bitcoin-august-2025-price-forecast-new-ath/)