Bitcoin’s Wild Ride: 63K BTC Leaves Long-Term Wallets as Panic Spreads

by

Ah, Bitcoin. The lovable rollercoaster of the crypto world. Right now, it’s struggling to gain any momentum as it hovers below the crucial $90,000 level. You know, that number everyone thought it would just “breeze past” – but no, here we are. The market is currently dominated by sellers, and if you believe the analysts, the bear market is either knocking on the door or already inside, unpacking its bags. In fact, many are calling it: Bitcoin probably peaked in early October at a fancy $126,000. Since then? It’s been all downhill.

But wait, there’s more! According to a shiny new report from CryptoOnchain via CryptoQuant, a staggering 63,000 BTC has recently vacated the cozy, long-term wallets of “HODLers” (those are the people who, presumably, laugh in the face of market fluctuations). These BTCs are now in the hands of short-term traders – or as we like to call them, the “I just learned about Bitcoin yesterday” crowd. A chart from CryptoOnchain shows a massive red bar, signaling that long-term holders are suddenly feeling the urge to cash out. So much for “HODLing” for life!

This kind of behavior is typical during the late stages of a bull market. You know, when those who bought in early and are now sitting on piles of profits start thinking, “Well, I might just take my winnings and run.” Meanwhile, the new crowd of short-term traders is eagerly snapping up these coins at prices that might make them wish they had a time machine to go back and buy at a discount.

Long-Term Holders Handing Over the Reins (and Coins) to Short-Term Buyers

Here’s where it gets a little interesting: CryptoOnchain notes that we’re seeing a major shift in behavior between Long-Term Holders (LTHs) and Short-Term Holders (STHs). Historically, LTHs have been the “big fish” of the crypto pond, calmly swimming through market storms, while STHs were the flailing minnows trying to figure out what the heck a Bitcoin even is. But now, the LTHs are cashing out, and the STHs? Well, they’re eagerly scooping up whatever they can find, often at prices that are beginning to feel a little spicy.

This isn’t necessarily a bad thing, though. In fact, it’s quite normal during the later stages of a bull run when early investors start locking in their profits, and fresh capital from new traders enters the market. It’s a kind of “passing of the torch” – except instead of a torch, it’s 63,000 BTC, and instead of a torchbearer, it’s just a bunch of people clicking “buy” when the price is climbing.

But hold onto your hats, because there’s a risk here. If these new buyers can’t absorb the supply of coins being dumped by the LTHs, well, the market could be in for a bigger correction. In other words, if demand doesn’t pick up the slack, Bitcoin might be in for a longer, more painful slump. And let’s face it, the market is already pretty jittery as it is.

The Weekly Chart: A Make-or-Break Moment for Bitcoin

Bitcoin is currently trying to stabilize around the $87,000 mark after a bruising multi-week sell-off that saw the price dip as low as $85,946. On the weekly chart, it’s made a dramatic visit to the 100-week moving average – that trusty green line that historically acts as a support level during corrections. It’s kind of like that friend who always says, “I’ll catch you if you fall.” But this time, the bounce isn’t exactly a textbook recovery. In fact, it’s more like a reluctant shrug.

Let’s be honest – momentum has shifted decisively to the bear side. The breakdown from the $110K-$100K zone triggered a wave of selling, and the past three weeks have been nothing but high-volume distributions. Sellers are like, “I’ve had enough of this rollercoaster,” and buyers, well, they’re not exactly stepping up to the plate. The 50-week moving average is starting to slope downward, which is never a great sign for those hoping to see Bitcoin reach new heights.

However, there’s still a glimmer of hope. The reaction at the 100-week MA is crucial. Previous macro corrections saw Bitcoin bulls defend this level with all their might. If Bitcoin can stay above $83K-$86K, the long-term bull structure is still intact. But if we see a weekly close below this zone? Buckle up, because that could send Bitcoin plummeting toward the 200-week MA, which sits somewhere around $56K-$60K.

Read More

2025-11-25 04:32