After consistently holding above $70,000 for three consecutive days, Bitcoin (BTC) price retreated to $68,131, marking a 3.96% decrease in the past 24 hours. This pullback has sparked concerns about escalating short-term selling pressure.
Data from blockchain analytics platform CryptoQuant reveals a significant withdrawal behavior among short-term holders (STH) holding Bitcoin for less than 155 days. In the last 24 hours, over 27,000 BTC were transferred to exchanges by STHs, reaching a multi-month high, reflecting some investors choosing to exit driven by profit-taking.
Meanwhile, technical indicators are also sending negative signals. On March 3rd, Bitcoin's 50-day simple moving average crossed below the 200-day moving average, forming a so-called "death cross." This technical pattern has historically been regarded as a sign of a shift towards bearish market sentiment. Reviewing the three previous death crosses in 2014, 2018, and 2022, Bitcoin experienced an average deep correction of 46% to 52%.
Bitcoin Dips Below $70,000: Intensified Short-Term Selling Pressure Hints at Potential Panic Sell-Off?
Bitcoin's fall below $70,000, coupled with concentrated selling by short-term holders and a death cross formation, has led to cautious market sentiment. Whale assets moving to exchanges and a potential breach of support could lead to a $65,000 test, as investors await Fed policy guidance.