Bitcoin’s Big Panic: Will $104K Save Us or Doom Us All? Find Out Now!

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  • Bitcoin’s short-term holders are now officially selling at a loss.
  • BTC’s future is hanging by a thread, and that thread is the market behavior of short-term holders.

So, Bitcoin’s brief flirtation with $112k ten days ago has already been reduced to a distant memory. A strong rejection has sent it plummeting to a more “humble” $103k. Fancy that, right?

Now, short-term holders (STHs) are watching their investments rapidly evaporate. If you bought Bitcoin above $104K, congrats – you’re now facing unrealized losses that would make even the most seasoned investor weep into their coffee.

It’s looking bleak for short-term holders, as they sell off their Bitcoin at a loss. But wait, there’s a sliver of hope. CryptoQuant analyst Frost points out that the STH SOPR has dipped below 1, while BTC hovers above $100K – a sign that maybe, just maybe, things aren’t as disastrous as they seem. Maybe.

At press time, the SOPR was at 0.99. Yep, that’s right, buyers are closing positions at a loss. But hold onto your hats, folks – we’re not done yet.

Short-term holders are still frantically unloading Bitcoin, with the Average Dormancy dropping to 8.5. In layman’s terms: younger coins are getting spent faster than your paycheck after a night out. This clearly shows that most of the selling pressure is coming from the STHs – those brave souls who bought in when the going was good.

Despite the madness, Frost remains cautiously optimistic. He believes that all the short-term profits have been absorbed by this point. In other words, there’s no more “easy money” left for the taking, so the selling pressure might be, well, exhausted. Who knew that exhaustion could be such a good thing?

Since STHs are known to react to market moves quicker than a cat to a laser pointer, there’s still hope for a bullish continuation. If they stop panicking, of course.

As losses pile up, holding onto Bitcoin seems a lot more sensible than selling it at a loss. Funny how that works, huh?

So, What Does This Mean for Bitcoin?

The declining SOPR and low average dormancy point to a mass panic among short-term holders who sold off as Bitcoin dipped. It’s the financial equivalent of running away from a dog you thought was going to bite you, only to realize it was just wagging its tail.

If these short-term holders continue their sell-off, Bitcoin could dip even further. But hey, it’s Bitcoin. If it survives this drama, it’ll likely thrive. Or implode. Who knows?

To keep this bull party going, the market needs to reignite some confidence among short-term holders. After all, the upward trend relies on the sweet, sweet taste of unrealized profits and happy thoughts.

In other words, Bitcoin needs to stay above a key level for the market to breathe easy. The main support level is $104.2K, with a backup at $96.9K. These levels are where all the critical STH price metrics converge, like a meeting of the minds, only with more numbers and less small talk.

If Bitcoin can keep its head above $104.2K, the chances of a massive price decline are slim. STHs would rather hold onto their coins than sell at a loss. But, if Bitcoin dips below $104K, it’ll have to stay above $96.9K to keep things stable. Anything lower, and we could see a repeat of the May catastrophe. In short, it’ll be like the 2018 crash but with fewer nostalgic memes.

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2025-06-03 03:10