Summary
- Bitcoin fell to $76,000, fueling stop-loss selling by short-term holders, the analyst said.
- Short-term holders sent 36,600 BTC to exchanges at a loss over 24 hours, while inflows to Binance totaled 45,400 BTC over seven days, he said.
- Rising capitulation selling and exchange deposits by short-term holders point to substantial selling pressure, but could also signal the market correction has reached an extreme, raising the possibility of a short-term reversal.
Forecast Trend Report by Period
Bitcoin fell to as low as $76,000, triggering heavier stop-loss selling by short-term holders.
Darkfost, an analyst at CryptoQuant, wrote on X, formerly Twitter, on October 31 that selling pressure from short-term holders, or STHs, surged after Bitcoin tested $76,000 a day earlier. More than 36,600 BTC were transferred to exchanges at a loss over the previous 24 hours, he wrote.
Short-term holders generally refer to investors who bought Bitcoin less than 155 days ago. They tend to react more sensitively to price swings than long-term holders, making them a gauge of near-term selling pressure in the market.
The pattern was also evident on Binance. Despite Bitcoin outflows tied to a recent hack, short-term holders sent a combined 45,400 BTC to Binance over the past seven days, the highest level in October, Darkfost wrote.
He added that more Bitcoin is moving to exchanges at a loss while exchange deposits by short-term holders are also increasing, signaling substantial selling pressure on recent buyers.
Still, panic selling by short-term holders does not necessarily point to further declines. Darkfost said such capitulation often signals that a market correction has reached an extreme, raising the possibility of a reversal in short-term price action.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.