Bitcoin [BTC] could soon record a case of further detriment in the charts. This was underlined by market activity, which suggests that investors share a bearish view at the moment.
This shift may also be reflected in Bitcoin’s price performance. At the time of writing, it was trading around $71,000 – down 44% from its all-time high. At the same time, market sentiment descended into extreme fear, while liquidity in the broader crypto market fell.
For the time being, the risk of a deeper relapse remains real. Investor exits are accelerating, order books are showing clear seller dominance and there are few signs of downward momentum waning.
Short-term bonds increase selling pressure
Short-term holders trade in line with historical patterns during periods of heightened uncertainty, but the magnitude of these selloffs significantly increases Bitcoin’s capitulation risk.
In the past 24 hours, these investors recorded their largest inflows to centralized exchanges – moving 60,000 BTC, worth approximately $4.27 billion, at the time of writing.
Source: CryptoQuant
More specifically, a large portion of this Bitcoin was transferred at a loss. This could be a sign of declining conviction among short-term participants, while it could also indicate that the prevailing distribution phase could extend further.
As confidence among short-term holders deteriorates – especially given their dominance in day-to-day trading activity – Bitcoin becomes increasingly exposed to sharp downside moves.
Capitulation typically describes a phase in which the price experiences a rapid and steep decline. Something like this often unfolds over one or two candlesticks as sellers overwhelm the remaining demand.
Miners are adding to the bearish momentum
The ongoing sell-off isn’t just limited to short-term holders. Miners are also contributing to the growing bearish pressure.
Miners play a central role in maintaining the Bitcoin network by validating transactions and earning block rewards. While some of these rewards are routinely sold to cover operating costs, recent data may indicate a broader loss of trust.
Over the past three days, conditions have also turned decidedly bearish. For example, the Miner Reserve fell to around 1.80 million BTC, signaling a rise in payouts as miners reassessed the near-term market outlook.
Source: CryptoQuant
This behavior can also be reinforced by the selling power of miners. This metric measures how aggressively miners are selling relative to their total holdings. It rose to a negative 5.4, confirming that miner outflows are higher compared to total supply.
If this trend continues, it could put continued downward pressure on the price and further weaken Bitcoin’s short-term prospects.
Increased sales dominate the broader market
Finally, on a broader level, Bitcoin currency flows have continued to rise in recent days. A rise in foreign exchange reserves could be a sign that more Bitcoin is being positioned for potential selling – a pattern that has historically preceded longer bearish phases.
In practical terms, a sharp rise in Bitcoin on exchanges means more supply is readily available to be sold on the market.
Source: CryptoQuant
If this trend continues, it would exacerbate existing bearish sentiment, especially as demand remains weak. Under these circumstances, Bitcoin could face continued risk of further downside in the short term.
Final thoughts
- Short-term holders have been selling aggressively, with around 60,000 BTC sold so far. This is the biggest single-day sale in the current phase.
- Mining companies are also increasing the pressure as outflows continue to exceed incoming supply.