Short-term holders shift to selling, with STH realized price at $94.5K, signaling a late bull market phase and potential cycle top.
James Wynn’s $1.26B BTC position closure and new $377M short reveal high-leverage trading fueling market volatility and bearish sentiment.
Analysts target $91K as a key level, predicting pullbacks below $100K will trap shorts, reset liquidity, and fuel potential price rebounds.
Bitcoin’s recent surge has triggered a marked behavioral shift among short-term holders (STHs), transitioning from accumulation to active distribution. According to Alphractal’s analysis, this pattern historically reflects the final phases of a bull market cycle. As of May 2025, the realized price for STHs stands at $94.5K, currently acting as key support.
https://twitter.com/Alphractal/status/1926364678214619462
Short-term holder supply remains under 6 million BTC, deviating from previous cycle tops when levels surpassed 6.5 million BTC. Meanwhile, long-term holders (LTHs) continue to accumulate, with realized prices at $33K and total holdings exceeding 14 million BTC. In a post by Alphractal, the disparity between STH and LTH realized prices confirms the post-bottom expansion phase, underscoring the bifurcated market outlook.
Massive Position Closure Triggers Market Repricing
High-leverage derivatives trading has also played a pivotal role in recent volatility. According to reports of Onchain Lens, trader James Wynn closed a $1.26B long position of 11,588 BTC on Hyperliquid, generating $40.5M in profits. His portfolio showed no open trades as of May 25, with over $44.9M in free margin and a neutral directional bias.
Just hours later, Wynn reopened with a $377M short on BTC using 40x leverage, reflecting heightened bearish conviction. The new short, entered at $107,128, involves -3,523 BTC, with a liquidation price set at $118,380. Spot assets remain minimal at $24,240.17, while staking assets exceed $4.4M, highlighting calculated asset exposure.
Analysts Highlight Crucial Technical Breakdown Risks
Titan of Crypto reported three aligned signals pointing to downside pressure: a MACD bearish crossover, RSI trendline breach, and price nearing an ascending channel breakdown near $ 105 K. Daily chart readings from April to late May show weakening bullish volume and a failed attempt to hold above $ 110 K. These signals suggest a potential drop, even under structurally bullish conditions.
In response, multiple analysts now eye $91K as the “value area low,” labeling it a liquidity trap zone. One analyst stated a dip to $91K would “wipe out late longs, trap shorts, and fuel the next leg up.” Pullbacks below $100K are no longer seen as breakdowns but as strategic entry points by seasoned investors.
Michael Saylor’s Tracker Draws Fresh Buys Despite Volatility
Michael Saylor’s Bitcoin commitment remains firm. In a May post, he noted, “I only buy bitcoin with money I can’t afford to lose.” Whenever Saylor posts, tracker strategies trigger renewed BTC buying, reinforcing long-horizon conviction.
Despite Wynn’s aggressive shorts, Bitcoin's resilience above $105K continues. STHs are actively distributed, but market absorption remains strong.
The post Bitcoin at $107K: Why Short-Term Holders Are Dumping as Long-Terms Double Down appears on Coin Futura. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
