Bitcoin sell-off by high-entry buyers may push price to $70K

Bitcoin’s (CRYPTO:BTC) recent decline has led to panic-selling among investors who bought near its all-time high of $109,000 in January, according to on-chain analytics firm Glassnode.

The firm reported on March 11 that the sell-off has triggered “intense loss realisation and a moderate capitulation event,” raising concerns that Bitcoin’s price could bottom at $70,000 if selling pressure continues.

Short-term holders, defined as those who have held Bitcoin for less than 155 days, are experiencing the most significant losses.

Glassnode highlighted that the average purchase price for these holders has increased from $62,000 in October to $91,362, leaving many with unrealised losses of about 10.6%.

The firm noted that “market momentum and capital flows have turned negative,” indicating reduced demand and growing investor uncertainty.

Market research firm 10x Research described the situation as a “textbook correction,” noting that nearly 70% of recent selling activity came from investors who bought Bitcoin in the past three months.

This pattern mirrors previous downturns, such as August’s decline from $68,000 to $49,000 amid economic concerns.

BitMEX (CRYPTO:BMEX) co-founder Arthur Hayes suggested that Bitcoin may retest support levels at $78,000 and could drop further to $75,000 if bearish sentiment persists.

Glassnode warned that short-term holders are “deeply underwater” between $71,300 and $91,900, making the probability of a temporary price floor at $70,000 significant.

Despite these bearish signals, Bitcoin saw a brief 7.5% spike over the past 24 hours as U.S. markets steadied following President Donald Trump’s comments about a possible recession.

Analysts remain divided on whether this rally signals a recovery or is just a temporary rebound.

At the time of reporting, the Bitcoin (BTC) price was $81,414.76.