Bitcoin Short-Term Holders See $23.4M Loss Surge Amid Market Volatility

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February 27, 2025 by Bena Ilyas

Bitcoin short-term holders faced $23.4M in losses on Feb 24, nearing past peaks of $38M and $25M.
Bitcoin dropped 7.10% to $87,454.01 on Binance, breaching key $92,835 support, signaling potential further decline.
RSI at 35 suggests oversold conditions, but MACD’s bearish crossover hints at continued short-term weakness.

Bitcoin short-term holders (STHs) faced significant realized losses, reaching $23.4 million on February 24, 2025. Glassnode, an on-chain analytics firm, reported this as one of the largest losses in the past three months. Previous peaks include $38 million on February 3, 2025, and $25 million on December 20, 2024. The surge suggests a shift in market sentiment, as STHs often react aggressively to short-term price fluctuations.

Bitcoin’s price declined 3.07% in the past 24 hours, closing at $89,208 on February 26, 2025, according to CoinMarketCap. Trading volumes surged to $28 billion during the same period, highlighting intensified market activity. Meanwhile, as of February 26, 2025, Bitcoin is trading at $87,454.01 on Binance’s USDT market, reflecting a 7.10% drop from the previous day.

Bitcoin’s Key Level at $92,835

Amidst the ongoing price movements, Bitcoin’s short-term holder cost basis is $92,835, a crucial level for determining future price direction. A break below this level could trigger a further decline toward the next major support at $71,970. If Bitcoin fails to reclaim the $92,835 level, it may struggle within a downtrend, potentially leading to extended bearish momentum.

Conversely, if Bitcoin holds above $92,835, a potential recovery could be on the horizon. A strong bounce from this level indicates resilience among STHs, propelling BTC toward key resistance levels such as $100,000. Traders and investors closely monitor these levels to gauge the market’s next move.

Market Implications and Technical Indicators

The recent spike in realized losses among BTC STHs has significant implications for traders. Increased selling pressure from these holders could drive further downward price action. Historical patterns suggest that large realized losses often precede further volatility as market participants react to increased uncertainty.

Technical indicators further support a cautious outlook. Bitcoin’s Relative Strength Index (RSI) dropped to 35 on February 25, indicating possible oversold conditions and a potential buying opportunity. However, the Moving Average Convergence Divergence (MACD) indicator signaled a bearish crossover, reinforcing the likelihood of continued short-term price weakness.

Additionally, the Network Value to Transactions (NVT) ratio increased to 58, suggesting that BTC’s market value is becoming more expensive relative to transaction activity. This overvaluation signal hints at the possibility of further corrections. The realized cap of BTC, which reflects the aggregate value of all coins based on their last transaction price, declined by 2.5% to $380 billion, illustrating the broader impact of STH losses on market capitalization.

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