BTC Short-Term Holders (STHs) may have panic-sold recently in response to the news about the Bybit hack. The 90-Day Active Supply analysis showed a noticeable decline in recent months, indicating a decrease in trading activity. In the past 24 hours, Bitcoin experienced significant volatility, with STHs realizing substantial losses due to panic-selling following the hack news. The 4-hour chart on Binance displayed bearish indicators, such as the Exponential Moving Average (EMA) cross showing a bearish crossover.
The Relative Strength Index (RSI) stood at 46.05, reflecting a slightly bearish outlook and indicating a consolidation phase for BTC. The Cumulative Volume Delta (CVD) showed strong selling pressure in the last 8 hours, pointing towards capitulation as STHs offloaded BTC. The Short-Term Holder Profit & Loss (P&L) chart highlighted significant losses among STHs, with heavy panic-selling observed in the $90K to $95K range following the hack news.
Analysis of the 90-Day Active Supply chart for BTC revealed a decline in recent months, suggesting that STHs had largely exited and potentially reducing selling pressure. A sharp net outflow of BTC from exchanges in the past 24 hours indicated holders were withdrawing BTC to off-exchange wallets, signaling reduced selling pressure. This pattern of declining active supply and negative netflows historically precedes short-term recoveries, indicating a potential shift towards recovery as selling pressure subsides.
Overall, recent events such as heavy short-term holder losses and declining exchange netflows may lead to short-term recoveries in the BTC market. Despite ongoing volatility, long-term indicators suggest a potential recovery as selling pressure diminishes. The current data points towards a possible buying opportunity for traders as distressed selling exhausts downward momentum and creates a short-term local bottom for BTC. As market conditions continue to evolve, it will be important to monitor key indicators for signs of strength or further decline in the cryptocurrency market.
