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Bitcoin Short-Term Holder Losses Suggest Possible Price Dip Toward $94,000–$97,000 Support Range

Bitcoin Short-Term Holder Losses Suggest Possible Price Dip Toward $94,000–$97,000 Support Range

CoinotagCoinotag2025/06/20 05:32
By:Jocelyn Blake
  • This week, 15,000 Bitcoin were moved at a loss by short-term holders, signaling potential downward pressure on BTC prices below the $100,000 threshold.

  • Onchain analytics highlight a critical support zone between $97,000 and $94,000, where Bitcoin may find a price floor amid ongoing market volatility.

  • COINOTAG reports that the transfer of BTC from short-term to long-term holders is a key dynamic stabilizing the market during recent sell-offs.

Short-term Bitcoin holders sold 15,000 BTC at a loss this week, indicating a possible dip below $100K, with onchain data pointing to a $94K-$97K support zone.

Short-Term Holder Losses Highlight Market Vulnerability and Potential Support Levels

Bitcoin’s recent market activity reveals a significant movement of approximately 15,000 BTC sold at a loss by short-term holders (STHs), a behavior often associated with panic selling during price corrections. According to data from CryptoQuant and Glassnode, this selling intensified midweek, coinciding with a price drop from $106,500 to $103,500. This pattern underscores the vulnerability of STHs, colloquially known as “weak hands,” who tend to liquidate positions during downturns, thereby increasing short-term volatility.

However, this selling pressure is partially mitigated by the absorption of these coins by long-term holders (LTHs), or “strong hands,” who typically provide market stability by accumulating during dips. The net position change between STHs and LTHs suggests a transfer of supply that could underpin a resilient price base, preventing a more severe decline below the psychologically important $100,000 level.

Onchain Data Indicates a Critical Support Zone Between $94,000 and $97,000

Further analysis of Bitcoin’s onchain cost basis for short-term holders reveals a probable support range between $94,000 and $97,000. This zone aligns with key liquidation thresholds and fair value gaps identified through technical indicators, suggesting it could serve as a local bottom during the current correction phase. Market participants should monitor this range closely, as it may represent an optimal entry point for accumulation before a potential price rebound.

Swissblock’s data highlights a persistent negative spot volume delta since June 2025, indicating ongoing selling pressure despite a modest price recovery. This “blind spot” in buyer demand suggests that Bitcoin’s price action may remain subdued until renewed buying interest emerges, reinforcing the importance of the identified support zone as a critical juncture for future price direction.

Market Dynamics: The Role of Long-Term Holders in Stabilizing Bitcoin’s Price

The recent transfer of BTC from short-term to long-term holders is a significant market dynamic that contributes to Bitcoin’s resilience amid volatility. Long-term holders typically exhibit lower sensitivity to short-term price fluctuations, enabling them to absorb sell-offs without triggering further panic. This behavior fosters a more stable market environment and can facilitate the formation of a sustainable price floor.

Data from CryptoQuant illustrates that while short-term holders have been aggressively selling, long-term holders have correspondingly increased their net positions. This absorption is crucial in maintaining Bitcoin’s price above key support levels and may signal growing confidence among institutional and experienced investors during uncertain market conditions.

Implications for Traders and Investors

For traders and investors, the current market environment underscores the importance of monitoring onchain metrics alongside traditional price analysis. The interplay between short-term holder losses and long-term holder accumulation provides valuable insights into market sentiment and potential price trajectories. Cautious accumulation near the $94,000–$97,000 support zone could offer strategic advantages, especially if broader macroeconomic factors stabilize.

Moreover, understanding the behavioral patterns of different holder cohorts can help market participants anticipate volatility and identify optimal entry and exit points. Staying informed through reliable onchain data sources and market analysis platforms like COINOTAG and Swissblock is essential for navigating the evolving Bitcoin landscape.

Conclusion

Bitcoin’s recent movement of 15,000 BTC at a loss by short-term holders highlights ongoing market pressure and the potential for a price dip below $100,000. However, the absorption of these sales by long-term holders and the identification of a support zone between $94,000 and $97,000 provide a foundation for price stabilization. Market participants should closely monitor these dynamics, as renewed buyer demand will be critical for Bitcoin’s next significant breakout. Maintaining awareness of onchain data and holder behavior remains vital for informed decision-making in this volatile environment.

In Case You Missed It: Bitcoin ETFs See Possible Slowdown in Inflows Amid Price Decline and Bearish Market Sentiment
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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