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1. One of the main reasons for Bitcoin's current price struggle is the constant seller pressure from short-term holders (STHs), or investors who hold Bitcoin for less than 155 days. The current Bitcoin cycle has witnessed a "top-heavy" market, with investors who bought BTC at higher prices holding a large portion of Bitcoin's supply. As a result, the STH group has become the main group facing the biggest price drop since Bitcoin's 30% correction from its all-time highs. In the report, "the supply lost by short-term holders surged to 3.4 million BTC. This is the largest amount of STH supply loss since July 2018."
2. Data shows that on-chain transfer volume has dropped to $5.2 billion per day, a sharp drop of 47% from the peak during the rebound to the all-time high. Similarly, the number of active addresses has also decreased by 18%, from 950,000 in November 2024 to 780,000.
At the same time, the open interest (OI) in the BTC futures market fell from $71.85 billion to $54.65 billion, a drop of 24%, and the perpetual futures financing rate also fell.
This deleveraging and liquidity contraction, coupled with the fact that only 2.5% of the total supply was profitable during the adjustment, limited the market's ability to rebound above $90,000, as buy orders were not enough to absorb sell orders.
3. New demand for Bitcoin continues to decline. The current BTC market lacks new demand (buyers) entering the market, and the cost basis distribution (CBD) heat map shows that supply is concentrated at higher price levels ($100,000 to $108,000), but there is no large influx of buyers at lower levels to drive price recovery.
BTCUSDT.P BTCUSDT BTCUSDT.P BTCUSD BTCUSD BTCUSD
1. One of the main reasons for Bitcoin's current price struggle is the constant seller pressure from short-term holders (STHs), or investors who hold Bitcoin for less than 155 days. The current Bitcoin cycle has witnessed a "top-heavy" market, with investors who bought BTC at higher prices holding a large portion of Bitcoin's supply. As a result, the STH group has become the main group facing the biggest price drop since Bitcoin's 30% correction from its all-time highs. In the report, "the supply lost by short-term holders surged to 3.4 million BTC. This is the largest amount of STH supply loss since July 2018."
2. Data shows that on-chain transfer volume has dropped to $5.2 billion per day, a sharp drop of 47% from the peak during the rebound to the all-time high. Similarly, the number of active addresses has also decreased by 18%, from 950,000 in November 2024 to 780,000.
At the same time, the open interest (OI) in the BTC futures market fell from $71.85 billion to $54.65 billion, a drop of 24%, and the perpetual futures financing rate also fell.
This deleveraging and liquidity contraction, coupled with the fact that only 2.5% of the total supply was profitable during the adjustment, limited the market's ability to rebound above $90,000, as buy orders were not enough to absorb sell orders.
3. New demand for Bitcoin continues to decline. The current BTC market lacks new demand (buyers) entering the market, and the cost basis distribution (CBD) heat map shows that supply is concentrated at higher price levels ($100,000 to $108,000), but there is no large influx of buyers at lower levels to drive price recovery.
BTCUSDT.P BTCUSDT BTCUSDT.P BTCUSD BTCUSD BTCUSD 
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✔Copy accurate trading signals✔Manage accounts🎁Stable profit of more than 210.8% per week🎁Success rate is as high as 98.55%, real-time communication: t.me/cryptoanalyst_baker
Signal entry: t.me/FcCygjylf
Signal entry: t.me/FcCygjylf
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.