Despite the sharp decline, Bitcoin remains resilient, with more than 90% of BTC supply still in profit, according to . Unlike previous panic episodes, such as FTX or Terra Luna, this decline appears to be a leverage-driven correction that reduces excess positions. At the same time, confidence among long-term investors remains intact.
Additionally, the sell-off was intensified when Bitcoin’s taker sell volume surged above $4 billion, indicating high activity in the market. This move coincided with BTC failing to hold around the short-term holder (STH) realized price at $112,370, a price that now forms a key resistance. Historically, this price is the average cost of the recent buyers, i.e., a continued rejection below this price may hasten the short-term losses to the level of $100,000.
This level, as noted by market analysts, typically dictates whether traders will hold their positions or exit. Constant rejection near the realized price has, in previous cycles, been accompanied by temporary capitulation, followed by stabilization.