Bitcoin is experiencing a relatively subdued week as it navigates a period of uncertainty, with short-term holders selling off significant amounts of BTC at a loss. Selling pressure has been increasing, exacerbated by geopolitical tensions and key announcements to come from the economic front. As an outcome, this environment engenders a very watchful eye toward cryptocurrencies.
Over the course of the week, short-term Bitcoin holders capitulated and sold -15k BTC at losses. It’s the collective panic selling of these “weak hands” that sends up red flags. There is increasing concern that in fact they will fall below $100,000.
Bitcoin has specifically shown a strong continued negative delta in the spot volume since June. This is a sign that there is continuing selling pressure in the market.
Put simply, a recent price rebound was lifted on weak buying volume, indicating a lack of conviction behind buyers. That won’t be enough to keep upward momentum going.
There are a number of reasons behind today’s market volatility. Escalating war between Israel and Iran has forced investors and traders alike to remain on the sidelines. The uncertainty leading up to the Federal Open Market Committee (FOMC) meeting has only added to investor caution.
We’ve seen aggressive selling from short-term holders in the last month. Additionally, this selling pressure combines with the broader market’s entrenched bearishness.
Even with the recent market turmoil, some analysts are forecasting renewed Bitcoin price volatility ahead. One of those volume metrics indicates a possible increase to $130,000 – $135,000 this summer.
