Bitcoin Market Sentiment Shifts as Short-Term Holders Exhibit Hesitation

A new development in the Bitcoin market has emerged, with short-term holders showing signs of hesitation. This shift in sentiment could have significant implications for the cryptocurrency’s future trajectory.

Bitcoin STHs Show Hesitation Amid Market Shift

Bitcoin’s short-term holders (STHs) are exhibiting hesitation, as indicated by a significant decrease in BTC inflows to Binance. This suggests reduced selling pressure and a shift toward a more cautious market mood. The decreased activity from 1-3 month holders further indicates a change in market sentiment, with short-term traders now holding onto their coins rather than selling. While Binance’s inflows decline, other exchanges witness increased activity, pointing to a broader shift from risk-taking to cautious restraint within the crypto market.

A Worrisome Lull in Crypto Market

The crypto market cap remained near the $2.70 trillion level over the past day, with markets frozen in anticipation of tariffs and volatility. The Crypto market Sentiment Index jumped to 44 due to the lull, close to the upper limit of the fear zone. Bitcoin gained more than 3.5% on Tuesday but paused near $85,300, losing upside momentum on approach to the 200-day moving average above $86,400.

GameStop Adds $1.5B Bitcoin to Balance Sheet

GameStop has raised $1.5 billion through a private debt offering, exceeding its initial target of $1.3 billion. The company plans to use the proceeds for general corporate purposes, including the acquisition of Bitcoin. The notes will mature on April 1, 2030, and investors have the option to convert their holdings into stock under specific conditions.

Bitcoin Price Forecast and Market Dynamics

An analyst expects Bitcoin (BTC) to continue consolidating between $75,000 and $88,000. On Wednesday, BTC faced slight rejection around the $85,000 resistance level after recovering 3.16% the previous day. A K33 report highlights that cryptocurrencies and equities have largely de-risked ahead of Donald Trump’s “Liberation Day.” Meanwhile, the demand for US spot bitcoin exchange Traded Funds (ETFs) continues to weaken, with an outflow of $157.80 million recorded on Tuesday.

Is The Bitcoin Bull Run Over? Watch This Key Price

The Bitcoin price is currently down more than 22% from its all-time high, displaying a series of lower highs on the daily timeframe. While the weekly and monthly charts remain bullish, calls for the beginning of the Bitcoin bear market are growing louder. Two prominent analysts have weighed in on what could be the deciding factor for an extended rally or a deeper downturn. Crypto analyst Charting Guy (@ChartingGuy) shared a chart emphasizing the $95,000 price point for Bitcoin, stating that reclaiming and holding $95,000 is crucial for a bullish reversal. This level was prior support for most of February but was rejected hard on March 2nd, turning it into resistance.