Recent volatility has shaken confidence in the crypto market, with Bitcoin experiencing a significant decline of over 6.88% in the last 24 hours. This drop has been driven largely by short-term holders (STH) who are exiting positions to minimize losses as selling pressure mounts. 📈 The STH-SOPR has dropped below 1.0, reaching 0.98, indicating a growing sense of panic among short-term investors and a potential for further price drops. 📉 💰 📈
Analysts suggest that this decline stems from both retail and large holder activity. A surge in selling activity, as evidenced by positive exchange netflows and a sharp rise in large holder’s netflow to exchange netflow ratio (up to 0.53%), suggests these market players are contributing to the decline. 📉
The heightened selling sentiment has resulted in increased Bitcoin supply, increasing its stock-to-flow ratio to a level not seen in recent weeks, potentially setting the stage for further price declines. 📉 ⚠️
Could Bitcoin see further downside? For a bullish reversal, it needs to reclaim the $80k psychological level.