Last week, Bitcoin (BTC) approached the critical psychological threshold of $100,000, prompting concerns about a potential price correction as short-term holders (STH) exhibited diminishing confidence in the leading cryptocurrency.
According to a recent analysis by CryptoQuant contributor Darkfost, the net position of Bitcoin STH has significantly declined over the past month, despite BTC maintaining its value above the $100,000 mark. For context, short-term holders are defined as those who have held their Bitcoin for less than 155 days, and they tend to react quickly to market volatility, often selling during downturns. During the current price retracement, short-term holders have recorded a cumulative net position change of -833,000 BTC, in contrast to the -977,000 BTC observed during the crash in April.
Darkfost pointed out that the behavior of short-term holders now mirrors the activity seen during Bitcoin's brief dip below $80,000 in April 2025, which ended with a low of $74,508. The analyst remarked that the recent decline around the $100,000 level has reignited fears among this group of investors, indicating their heightened sensitivity to market fluctuations.
Despite losing momentum after reaching an all-time high (ATH) of $111,814, Bitcoin showed signs of recovery over the weekend, suggesting a potential reversal in trend. Crypto analyst Ali Martinez highlighted that BTC has surpassed the critical resistance level of $106,600. He expressed optimism in a recent post, forecasting that Bitcoin could rise to $108,300 or even $110,000 if the current momentum is sustained.
In another analysis, fellow crypto expert Rekt Capital presented a daily chart indicating that Bitcoin has not only broken free from a two-week downtrend but may also be converting this previous resistance into a new support level. Additionally, various technical indicators are signaling ongoing bullish momentum, with Bitcoin's Hash Ribbons recently generating a strong buying signal. On-chain data further suggests that BTC might experience a sharp upward shift in the near term, potentially fueled by a negative funding rate on Binance, which often leads to a short squeeze.
However, despite the positive outlook, there are lingering concerns. Recent statistics reveal that long-term holders are gradually leaving the market, and an influx of retail investors could contribute to increased volatility in the current rally. At the time of reporting, Bitcoin is trading at $107,627, reflecting a 1.9% increase over the past 24 hours.
