Bitcoin: Crucial Group in Extreme Distress – Implications for BTC Future

Key Points

• Bitcoin’s price has been dropping, causing panic among short-term investors.
• Increased selling activity from both whales and retailers indicates a strong lack of market confidence.

Bitcoin’s price has been experiencing a downward trend, dropping by 1.4% over the past week. This has caused a state of panic among short-term investors.

Bitcoin’s value hit a low of $81k, marking a 1.40% fall on the weekly charts and a 0.51% drop on the daily charts. These price fluctuations have resulted in rising volatility, causing a sense of panic among short-term investors.

Panic and Fear Among Investors

Data from CryptoQuant suggests that short-term Bitcoin investors are in a state of extreme panic and fear. Since February, these investors have been consistently selling their coins at a loss, indicating a lack of market confidence.

The Short-Term Holder’s SOPR (STH SOPR) sat below 1, suggesting that most on-chain movements are at a loss. This trend was also observed during the declines in March, where short-term investors sold more at a loss, further reflecting the prevailing panic and fear.

The declining short-term holders’ MVRV ratio further validates this lack of market confidence. The STH MVRV has declined to 0.86, implying that STH holders are holding at a loss.

Market Behavior and Implications

Bitcoin’s exchange netflow indicates that investors have turned to aggressively selling. This has resulted in two consecutive days of positive netflow for the first time in 12 days. This increased selling activity suggests a state of panic among short-term investors.

This trend is not limited to retail traders but also extends to whales. Large Holder’s Netflow to Exchange Netflow Ratio has turned positive over the past day, implying that whales are sending more Bitcoin into exchanges, adding further pressure on its price charts.

This bearish sentiment among both whales and retailers usually results in higher selling pressure. If the prevailing fear continues, Bitcoin could see further losses on its price charts, potentially dropping to $81617. However, if buyers view the drop in STH MVRV as a buying opportunity, Bitcoin could reclaim $84900 and even attempt a move towards $87k.