Bitcoin Short-Term Holders Sell 26,000 BTC, Causing 30-Day Demand Momentum to Drop 480k BTC

Over the past week, Bitcoin has experienced significant gains, leading to a surge in short-term selling activity. This trend has been particularly pronounced among short-term holders (STHs), who have been taking advantage of the recent price rally to realize profits. The data indicates that STHs have been selling their Bitcoin at a rapid pace, with over 26,000 BTC flooding into exchanges within a 24-hour period. This influx has been a dominant trend over the past week, as evidenced by the Exchange Inflow Age Bands.

The selling pressure from STHs has been substantial, as shown by the 30-day Demand Momentum indicator, which has declined to -480k BTC. This negative value suggests that STHs are offloading more Bitcoin compared to long-term holders (LTHs). The Spot Volume Delta (7DA SMA) has also flipped deeply negative, standing at -301 million, an unusually bearish figure. This implies that aggressive sellers are dominating the market, and spot demand is significantly weakening.

The recent surge in profit-taking has caused the Profit-Taker RSI (7D) to spike to 82, indicating heightened realized profits and growing sell-side pressure as Bitcoin prices rise. Currently, sellers, particularly STHs, are dominating the market, while LTHs are not selling and appear to be holding back. This divergence between STHs exiting and LTHs holding firm points to a period of consolidation for Bitcoin. With LTHs absorbing the sell pressure, Bitcoin is likely to range between $92K and $95K for now. For a break above $96K, STH selling would need to ease; otherwise, any bullish momentum may stall.