Key Takeaways:
- Short-term holders sold over 50K BTC worth $5.69B within just 2 days.
- Retail sentiment flipped bearish, marking the most pessimistic mood since June 22nd, according to Santiment.
- Analyst recommends the current dip as an accumulation opportunity for patient investors.
Bitcoin (BTC) fell to $113,000 this week, down more than 5% from its recent all-time high of $124,000, sparking one of the largest sell-offs by short-term holders in months. According to CoinMarketCap, the steep decline has triggered panic selling at heavy losses as weaker hands exit the market.
According to Maartun, an analyst from CryptoQuant, recently shared insights about Short-term holders (STH) booking huge losses on BTC, one of the highest in recent weeks. Over the past two days, more than 50K BTC worth $5.69 billion has been sent to exchanges.
On the current momentum of the market, Brian Quinlivan, the director of marketing at Santiment with 10+ years of experience in data analytics, recently shared his insight. According to him, after BTC dipped below $113K, it led to a sudden downward bearish sentiment on social media. The analyst emphasized that –
Retail traders have done a complete 180 after Bitcoin has failed to rally and dipped below $113K.
According to the sentiment chart, a drop in BTC prices and failure to bounce back flipped the sentiment from bullish to bearish. The analyst also highlighted that the last 24 hours have witnessed the most pessimistic mood on social media since June 22nd, when concerns of conflict triggered a wave of panic selling. He believes that this kind of emotional shift, especially when it reaches peak fear, may indicate a strong opportunity for patient investors, as markets often move in the opposite direction of the crowd.
Conclusion
BTC’s declining trend has wiped out numerous STH with over $5 billion in realized losses and as retail sentiment turns extremely bullish since June 22nd, all these indicators hint at major panic selling. Analysts believe it may also be building the groundwork for a future rebound as stronger hands accumulate. For the time being, traders will be watching to see if BTC can hold above $113K or if any dips spark another wave of selloffs.
