Key Points
- Bitcoin’s Short-Term Holders (STHs) likely panic-sold after the recent Bybit hack, leading to substantial losses.
- Analysis of the 90-Day Active Supply shows a significant decline, indicating a decrease in trading activity.
In the wake of the Bybit hack, Bitcoin underwent significant volatility, with Short-Term Holders (STHs) suffering major losses, likely due to panic-selling.
Binance‘s 4-hour chart for BTC revealed notable bearish indicators over the past 16 hours. The Exponential Moving Average (EMA) cross showed a bearish crossover, indicative of short-term downward momentum.
Price Decline and Bearish Outlook
Bitcoin’s price fell to $96,259.9, a decrease of 0.12% from the previous period. The Relative Strength Index (RSI) was at 46.05, suggesting a neutral but slightly bearish outlook. This level indicated that BTC was in a consolidation phase, with no clear overbought or oversold conditions.
If BTC rebounds above 50, this could signal a return of bullish sentiment and support price recovery.
The Cumulative Volume Delta (CVD) revealed a net volume delta of -94.67K, indicating strong selling pressure in the last 8 hours. These signals collectively suggested capitulation, where STHs sold off BTC, potentially forming a short-term local bottom as selling pressure decreased.
STHs’ Losses and Potential Local Bottom
The Short-Term Holder Profit & Loss (P&L) to Exchanges Sum chart also underscored significant losses among STHs in the last 24 hours. The predominance of red bars, peaking at -43.9K BTC, pointed to heavy panic-selling around $90K to $95K following the Bybit hack news.
The minimal STH profit line suggested that few short-term traders made gains. This data hinted at a potential local bottom, as distressed selling often exhausts downward momentum, creating a possible buying window for traders.
The 90-Day Active Supply chart for BTC showed a notable decline in recent months. This metric indicated a decrease in trading activity. The current trend suggested that STHs had largely exited, potentially reducing selling pressure.
BTC’s netflow chart for aggregated exchanges over the last three months revealed a sharp net outflow of -546.11 BTC in the past 24 hours. This marked a significant reversal from the previous week’s inflows, and the 30-day average inflows.
A sudden negative netflow typically means that holders are withdrawing BTC to off-exchange wallets, suggesting reduced selling pressure. This could indicate renewed buying interest.