Bitcoin Faces Bearish Pressure Amid Short-Term Supply Spike
- Since mid-December, Bitcoin has faced multiple rejections at the $90,000 price zone and is currently consolidating around $87,000.
- Analyst Sunny Mom highlights a rise in short-term Bitcoin holders, indicating bearish sentiment as these investors hold coins for less than 155 days.
- Repeated spikes in Net Realized Loss since October suggest ongoing capitulation among investors, with many locking in losses.
- Exchange reserves are at multi-year lows, indicating limited sell-side liquidity and a demand vacuum due to macroeconomic uncertainty.
Bitcoin’s price struggles are compounded by increased short-term holder activity and low exchange reserves, creating a challenging market environment. The lack of new buyers further exacerbates the demand vacuum, making it difficult for prices to rebound significantly.
Despite potential recovery predictions for Q1 of the following year, current conditions suggest that Bitcoin may experience further downward pressure before stabilizing. (Source)
