#Bitcoin is now in a high-risk zone because short-term holders are selling at a loss.
Recent on-chain data shows that short-term holders are losing money, with their realized profits and losses dropping to around minus 18%. In the past, when losses reached this level, it usually meant the market was in a late stage of a correction. Weak hands are being forced out as prices stay below the average purchase price of short-term holders, which points to a short-term bearish trend.
This phase looks like a shift from distribution to panic selling, where stronger investors are buying up the supply. The gap between the current price and the average cost basis is shrinking, which means support levels are weakening. This often leads to bigger price swings as traders reposition.
If history repeats itself, extreme losses like these often come just before a local bottom—but only after all the selling pressure is exhausted. Until profits return to a neutral level, Bitcoin remains at risk of falling further before any real recovery can begin.
#BTC Price Analysis #Macro Insights#writetoearn