After hitting a historic high above $124,000, Bitcoin experienced a swift decline, plummeting below $115,000 in just days. This drop triggered a wave of liquidation from short-term investors, resulting in billions of dollars worth of losses. The severity of this on-chain shock reveals a notable shift in market psychology as the bullish sentiment wanes. While some analysts see this decline as a temporary correction, others believe it could signal the start of a long-term retreat. 48 hours saw over 50,000 BTC sold at a loss, totaling $5.69 billion in realized losses, according to CryptoQuant data. This massive selloff stands as one of the largest in recent weeks. Bitcoin’s price now sits below the key level of $110,000, identified by analysts as a crucial point to monitor. Short-term investors are feeling the pressure, with nearly 50,000 BTC being transferred from exchanges at a loss over just two days. This is the most significant selling pressure witnessed in over a month. This capitulation event has highlighted the heightened volatility of Bitcoin and its rapid shifts in sentiment, creating uncertainty about the market’s direction. Whether this correction represents a temporary setback or a harbinger of a lasting decline remains to be seen. CryptoQuant analysts believe that Bitcoin may bounce back above $115,000-117,000 but some remain cautious and warn of a potential repeat of the past, where repeated capitulations led to prolonged consolidation phases. The future trajectory of Bitcoin’s price will hinge on whether short-term investors can weather this volatile market or if long-term players capitalize on the current downturn for greater gains.