Short-Term Holders Trigger Massive $21B Bitcoin Exodus—Here’s Why It Matters

Bitcoin's latest sell-off isn't your typical market dip—it's a calculated retreat by short-term holders cashing in at scale. $21 billion vanished faster than a Wall Street banker's moral compass.

The panic button gets pressed

When the 'weak hands' dump, they don't whisper. These traders just liquidated enough BTC to buy a small country—or at least a Manhattan penthouse.

Market tremors ahead?

Volatility isn't coming—it's already here. The question isn't whether this move was rational, but who's left holding the bag when the music stops.

One thing's certain: in crypto, patience isn't just a virtue—it's the only strategy that outlasts the hedge funds' algorithms.

• Short-term holders drove 85% of Bitcoin’s $21 billion sell-off volume.
• Analysts warn of deeper losses if Bitcoin breaks key support levels.
• Reclaiming $116,800 may trigger a bullish reversal and a new ATH.

Short-term Bitcoin holders drove the latest sell-off, accounting for 85% of the sales. While 90% of the BTC supply remains in profit, analysts warn of further downside if key support breaks. They also predict a rally if resistance is reclaimed.

Bitcoin Sell-Off Fueled by Profit-Seeking Traders

Bitcoin recorded $21.34 billion in spent volume over the past 24 hours, according to Glassnode data. Out of this figure, $18.24 billion (85.5%) came from short-term holders (STH), while long-term holders (LTH) spent only $3.10 billion (14.5%).

This signals the current sell-off is led by recent buyers rather than long-term investors. Short-term holders are often more reactive to market volatility and quicker to realize gains.

Source: X

Meanwhile, Glassnode notes that more than 90% of the bitcoin supply remains in profit. This is the highest level in over a month, sustaining above the 90% threshold. When most of the supply sits on gains, the pressure to take profit rises sharply.

Glassnode notes that the +1-standard deviation of this metric lies at 91%. If that level breaks, a deeper reset may follow. Current market conditions mirror previous phases where unrealized profits triggered tactical corrections.

Bitcoin in Bearish Pause After Profit Taking

Swissblock adds that the market shift is part of a broader tactical correction. July opened with bullish consolidation and new local highs. That momentum has now stalled, not broken.

Bitcoin is currently in what Swissblock calls a “bearish pause,” following a period of bullish accumulation. Their short-term framework reflects this with a shift from positive to negative momentum on weekly charts.

They stress that the macro and on-chain conditions remain key. If both remain stable, a breakout reset is possible in August. Until then, Bitcoin sits in a neutral-to-bearish holding pattern awaiting external catalysts.

This correction is tactical and not yet indicative of a full market breakdown. However, if short-term holders continue to dominate sell-side pressure and profit levels start declining, bearish momentum could extend.

Source: X

Swissblock notes that the current 96% profit rate is a double-edged sword. On one side, it shows that most holders are in a strong position. On the other hand, the lure of locking in gains increases the likelihood of more selling.

Key Levels Will Determine the Next Move for Bitcoin

Market analyst Michael van de Poppe, in his analysis on X, says that all the downside liquidity has already been absorbed. This leads to the indication that the market cleansed weak hands. Hence, it could reverse or come back into the range.

Van de Poppe further said that the level to keep an eye on is at $116,800. If Bitcoin can recover that range, it WOULD continue its upward trend. However, failure to do so would reinforce a rejection and uphold the bearish pattern.

He added that an effective breakout at the price of $116,800 will probably result in a new all-time high (ATH). The next few weeks will be determined by how Bitcoin responds to this important line of resistance.

Source: X

On top of this, an analyst @ali_charts notes a powerful support wall at the level of $ 105,000 to $ 107,000. This range has become the last zone of protection.

At this juncture, the price is around this support band. The invalidation of the break can result in a faster rate of the drawdown to the next zone of liquidity.

According to the volume profile data using TradingView data, there is a significant amount of bid concentration around that support area. Ali added that there can’t be a drop below that area to avoid more pronounced declines.

Source: X