Bitcoin short-term holders panic-sell – How will this affect BTC’s future?

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Is Bitcoin Dying?!

Bitcoin short-term holders panic-sell – How will this affect <a href="https://pricpr.com/btc-usd/">BTC</a>’s future?
  • BTC STHs may have panic-sold in reaction to the recent news about the Bybit hack. 🤑
  • Analysis of the 90-Day Active Supply reflected a notable decline in recent months. 📉

In the past 24 hours, Bitcoin [BTC] experienced notable volatility. Short-Term Holders (STHs) realized substantial losses, likely driven by panic-selling following the Bybit hack news. Drama much?

Also, over the past 16 hours, BTC’s 4-hour chart on Binance showed significant bearish indicators.

The Exponential Moving Average (EMA) cross displayed a bearish crossover, with the 9-period EMA dropping below the 26-period EMA around hour 14, signaling short-term downward momentum.

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This aligned with BTC’s price decline to $96,259.9, marking a -0.12% drop from the previous period.

The Relative Strength Index (RSI) stood at 46.05, reflecting a neutral but slightly bearish outlook.

This RSI level suggested that BTC remained in a consolidation phase, with no clear overbought or oversold conditions. If it rebounds above 50, bullish sentiment might return, supporting price recovery.

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Also, the Cumulative Volume Delta (CVD) showed a net volume delta of -94.67K, reflecting strong selling pressure in the last 8 hours.

These signals collectively pointed to capitulation, where STHs offloaded BTC, potentially forming a short-term local bottom as selling pressure diminished.

Panic selling peaks: What is the turning point?

The Short-Term Holder Profit & Loss (P&L) to Exchanges Sum chart for the last 24 hours also highlighted significant losses among STHs.

The dominance of red bars, peaking at -43.9K BTC, indicated heavy panic-selling around $90K to $95K following the Bybit hack news.

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The STH profit line remained minimal, reinforcing the idea that few short-term traders saw gains. Similar trends occurred in early 2022, where high realized losses preceded short-term price recoveries.

This data suggested a potential local bottom, as distressed selling often exhausts downward momentum, creating a possible buying window for traders.

BTC’s liquidity shift

Analysis of the 90-Day Active Supply chart for BTC, covering 2012 to 2025, reflected a notable decline in recent months. As of early 202

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2025-02-23 21:15