Article with AI Analysis
Date: March 12, 2025
Source: Cointelegraph
Introduction
Bitcoin investors who bought at peak prices are now panic-selling, leading to significant market pressure. Onchain analytics firm Glassnode has identified a "moderate capitulation event," suggesting that Bitcoin's price could stabilize around $70,000.
Short-Term Holders Flee as Bitcoin Declines
Bitcoin buyers who entered the market at an all-time high of $109,000 in January are now selling at a loss. Glassnode’s March 11 market report highlights that these short-term investors have realized significant losses as Bitcoin’s price declined.
The short-term holder realized price—the average purchase price for those holding Bitcoin for less than 155 days—was $62,000 in October. By March, it had surged to $91,362, an increase of 47% over five months. However, with Bitcoin trading at $81,930, many short-term investors are experiencing an unrealized loss of around 10.6%.
Glassnode reports that Bitcoin short-term holders are “deeply underwater” between $71,300 and $91,900. The ongoing sell-off suggests a potential price bottom around $70,000 if downward momentum continues.
Market Correction and Possible Bottom
Market research firm 10x Research describes this as a “textbook correction.” With Bitcoin dipping below $80,000, approximately 70% of all selling has come from investors who bought within the last three months.
Adding to the uncertainty, BitMEX co-founder Arthur Hayes has suggested that Bitcoin may retest the $78,000 level, with a potential further decline to $75,000 if support fails.
Glassnode draws parallels to previous Bitcoin sell-offs, such as in August, when the price dropped from $68,000 to $49,000 due to recession fears, weak employment data, and underperformance in tech stocks.
However, there are signs of recovery. Bitcoin surged 7.5% in the past 24 hours, following a market rebound on March 11, after U.S. President Donald Trump refused to rule out the possibility of a recession.
AI-Powered Sentiment Analysis
Our AI analysis of this article revealed:
Sentiment Score: -0.051 (Neutral to slightly negative)
Financial Sentiment: -0.077 (Mildly negative market sentiment)
Polarity Score: -0.051 (Slight negative bias in tone)
Subjectivity Score: 0.484 (Balanced between factual analysis and opinion)
These scores suggest that the article conveys a sense of market uncertainty, with a slightly negative tone but a well-balanced mix of objective analysis and subjective interpretation. The mild negative financial sentiment reflects market concerns but also leaves room for potential stabilization.
Read More
Read the full article on Cointelegraph. https://cointelegraph.com/news/bitcoin-high-entry-buyers-sell-pressure-btc-retrace-possible
Disclaimer
This article was generated using AI and reviewed for accuracy. The information presented is for educational purposes only and should not be construed as financial advice. Always consult with a professional before making investment decisions.