Bitcoin buyers who entered at its $109,000 all-time high in January are now panic-selling, accelerating a market correction, according to on-chain analytics firm Glassnode.
In its March 11 market report, Glassnode noted that the sell-off among top buyers has triggered “intense loss realization and a moderate capitulation event.”
Short-Term Holders Drive Selling Pressure
🔹 Bitcoin’s short-term holder realized price—the average purchase price of BTC held for less than 155 days—has jumped 47% in five months, rising from $62,000 in October to $91,362 today, according to Bitbo data.
🔹 With Bitcoin trading at $81,930 (as of publication), short-term holders are facing an unrealized loss of 10.6%.
Glassnode observed that demand is weakening as market sentiment shifts bearish.
“Market momentum and capital flows have turned negative, signaling a decline in demand strength,” the firm noted.
Bitcoin Could Bottom at $70K If Selling Continues
📉 Short-term holders are “deeply underwater” between $71,300 and $91,900, and if selling pressure persists, Bitcoin could bottom as low as $70,000, Glassnode warned.
“The probability of forming a temporary floor in this zone is meaningful, at least in the near term.”
Market research firm 10x Research called this a “textbook correction”, reporting that 70% of recent selling came from investors who bought within the last three months.
Arthur Hayes Predicts More Downside
BitMEX co-founder Arthur Hayes weighed in on March 10, predicting that Bitcoin may retest $78,000, and if that level fails, $75,000 is next.
Glassnode compared the current sell-off to August 2024, when Bitcoin plunged from $68,000 to $49,000 amid:
đź”» Recession fears
đź”» Weak U.S. employment data
đź”» Poor performance in major tech stocks
Bitcoin Rebounds 7.5% as Markets Steady
Despite the recent drop, Bitcoin has bounced back 7.5% in the past 24 hours, following stabilization in U.S. markets after a sharp sell-off triggered by Donald Trump’s comments on a potential recession.
With market uncertainty lingering, Bitcoin remains in a volatile zone, and traders are watching closely for signs of a bottom.
