Bitcoin Price Dip: Short-Term Holders Triggering Correction?

Bitcoin's price, while recently reaching near all-time highs, shows signs of a potential correction. A key indicator, the Bitcoin Supply Held By Short-Term Holders, is declining, suggesting distribution by short-term investors. This behavior, according to on-chain analytics firm Alphractal, is a classic sign that a bull cycle may be nearing its end. Short-term holders (STH), known for their reactive trading, are offloading their holdings after the recent price increase, slowing demand. Alphractal highlights that the STH realized price sits at $94,500, a crucial support level. Conversely, the Long-Term Holder (LTH) realized price is around $33,000, indicating a divergence in investor behavior. While past instances of STH distribution didn't prevent Bitcoin from reaching new highs, macro on-chain signals and the halving cycle pattern suggest a significant correction might begin after October 2025. Currently, Bitcoin is trading just below $109,000, up slightly in the last 24 hours but representing a cool-off period after recent gains. The overall situation paints a picture of potential market volatility, with short-term holders' actions suggesting a possible price correction in the near future, even if the potential for further upside remains. This divergence between short-term and long-term investor behavior highlights the complexity of predicting Bitcoin's price movements accurately. The confluence of on-chain data and historical patterns creates a compelling case for caution, though not necessarily a definitive prediction of an immediate crash. The market remains dynamic and influenced by numerous factors beyond just STH activity.

(Source: https://www.newsbtc.com/news/bitcoin/bitcoin-short-term-holders-distributing-again/)