Bitcoin Price Correction: STH Selling Intensifies, But Reversal Signs Emerge
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Bitcoin's recent price dip below $100,000 triggered significant selling among short-term holders (STHs), those holding BTC for less than 155 days. This mirrors the activity seen during April's price drop, raising concerns about a deeper correction. A cumulative net position change of -833,000 BTC has been observed among STHs, highlighting their sensitivity to market volatility. Despite this negative trend, several indicators suggest a potential reversal. Bitcoin has broken through key resistance levels, exceeding $106,600 and potentially targeting $108,300 or even $110,000 according to analyst predictions. The cryptocurrency has also escaped a two-week downtrend, turning former resistance into potential support. Technical indicators like the Hash Ribbons are flashing buy signals, and a negative funding rate on Binance hints at a possible short squeeze. However, caution is warranted. Long-term holders are gradually exiting the market, and an influx of retail investors could introduce volatility. The interplay of these factors creates a complex scenario where short-term anxieties are countered by potential bullish momentum, making the near-term outlook for Bitcoin uncertain despite its recent price increase.
