Bitcoin Experiencing Panic Selling Among Short-Term Traders

While the price of Bitcoin has been fluctuating in recent days, on-chain data shows that short-term investors are panic selling. Crypto analytics platform CryptoQuant revealed that short-term traders (Short-Term Investors) have started to realize their losses, signaling panic selling.

According to the data, Bitcoin's (BTC) short-term SOPR (Realized Rate of Return) indicator has fallen below 1. This level indicates that traders are selling below their costs and therefore panic selling is taking place, which is putting pressure on the market. According to information compiled by CryptoQuant, more than 30,000 Bitcoin assets were moved to exchanges at a loss in recent days alone. This represents a loss of approximately $3.39 billion.

Another point that stands out is that the Bitcoin price is still trying to hold on to the realized price level, known as the average cost level for short-term investors. Based on historical data, this level is often known to work as a support point.

According to CryptoQuant's analysis, not only small investors are suffering losses, but also whales. New whales sold at a loss of approximately $184.6 million, while old whales sold at a loss of $26.3 million. This suggests that short-term price momentum is weakening.

Critical support levels stand out as an important stage. According to the analysis, the Short Term Traders MVRV indicator close to 1 indicates that the average trader is at breakeven, while the SOPR falling below 1 indicates that many traders exited below cost with panic selling. CryptoQuant emphasizes that the Bitcoin price is at this critical support level and that there is a possibility of a recovery if this level is maintained, otherwise a new wave of capitulation selling may begin.