Bitcoin Short-Term Holders Trigger Sell-Off as Market Eyes Potential Bottom Near $94K–$97K
Recent on-chain data reveals that short-term Bitcoin (BTC) holders have been offloading significant amounts of BTC at a loss, contributing to increased market volatility. Analysts suggest this panic selling could signal a nearing price bottom, with key support levels forming between $94,000 and $97,000.
Short-Term Holders Drive Selling Pressure
According to CryptoQuant, short-term holders (STH) – those who held BTC for less than six months – sold approximately 15,000 BTC this week. The selling intensified as Bitcoin’s price dropped from $106,500 to $103,500, with 16,700 BTC moved to exchanges on Wednesday alone. This behavior highlights STHs’ tendency to react emotionally to price dips, often liquidating positions at a loss rather than holding through downturns.
Glassnode data further indicates that STH supply has declined, particularly after sharp corrections. While this suggests weaker hands are exiting the market, it also creates accumulation opportunities for long-term investors (LTHs), who continue to buy the dip.
Key Support Levels and Market Sentiment
Analysts at Swissblock note that Bitcoin is currently trading in a "market blind spot," with spot trading volumes remaining negative since June 2025. The $94,000–$97,000 range is seen as a critical support zone, aligning with STH cost basis and historical demand levels. If BTC stabilizes here, it could form a local bottom before a potential rebound.
However, if selling pressure persists and the price breaks below $94,000, the next major support could be near $92,000. Conversely, a recovery above $97,000 might signal renewed bullish momentum.
Long-Term Holders Absorb the Sell-Off
Despite short-term volatility, long-term holders (LTHs) remain unfazed, continuing to accumulate BTC at lower prices. This divergence between STH panic selling and LTH accumulation suggests that the current downturn may be a temporary correction rather than a long-term bearish reversal.
