Bitcoin’s Short-Term Squeeze: The Market Laughs as It Drops

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Bitcoin [BTC] stands at the threshold of a harsher dawn, where the chart’s line gnaws like a rusted blade and the crowd’s breath fogs the glass of certainty. The market, that stubborn city square, hums with a bearish chorus and the traders pretend not to notice the cold wind in the morning.

This shift is etched in price as well. At the moment, Bitcoin hovers near $71,000, a retreat of 44% from its all-time height, a veteran stepping back from a burning furnace. The air is heavy with fear, and liquidity across the broader crypto market thins like a crowd thinning out after a bad joke at the factory canteen.

For now, the danger of a deeper pullback stands in the doorway with a shrug. Exits quicken their pace, order books tilt toward sellers, and any sign that the slide might pause is as scarce as a polite answer in a heated meeting.

Short-term holders amplify sell pressure

Short-term holders operate in the wheelwork of history during storms of uncertainty, yet the scale of this selling makes Bitcoin’s risk of capitulation loom like a shadow over a gaunt street.

In the last 24 hours, these souls dragged 60,000 BTC to centralized exchanges, worth roughly $4.27 billion, as if cashing out of a losing bet with a sigh and a shrug.

More telling still, much of this Bitcoin moved at a loss. A mercy-kiss to the hopes of the impatient crowd, perhaps, while hinting that the prevailing distribution phase may hold on a bit longer than a prank in a crowded hallway.

When confidence among short-term holders fizzles-especially given their dominance in daily trading-Bitcoin becomes a more inviting target for sharp, sudden drops.

Capitulation is the word that returns when the price plummets in a rush. A flash of red on the screen and the crowd’s last stubborn buyers vanish like smoke after a pistol shot, often measured in one or two candlesticks as demand succumbs to the chorus of selling.

Miners add to bearish momentum

The rout does not belong to the short-term chorus alone. Miners join the chorus, lending their own weight to the bearish bass line.

Miners hold a central role in the network, validating transactions and earning block rewards. While part of these rewards are routinely sold to cover operating costs, recent data hints at a broader loss of faith that goes beyond mere maintenance of the flame.

In the last three days, the mood shifted decisively bearish. The Miner Reserve dropped to roughly 1.80 million BTC, a sign of rising cash-outs as miners reassessed the near-term horizon.

This behavior is reinforced by the Miner Selling Power, a gauge of how aggressively miners sell relative to their holdings. It surged to negative 5.4, confirming that outflows have been elevated compared to the broader supply.

If this trend persists, it could press the price downward for longer and deepen Bitcoin’s short-term gloom.

Elevated selling dominates broader market

On a wider stage, Bitcoin’s exchange netflows have continued to climb in recent days. A rise in exchange reserves may signal more Bitcoin being positioned for sale-a pattern that has historically preceded extended bearish spells.

In practical terms, more Bitcoin on exchanges means more supply ready to be sold on the market.

If this trend persists, it would compound the existing bearish mood, especially as demand remains thin. Under these conditions, Bitcoin might face a prolonged risk of further downside in the near term.

Final Thoughts

  • Short-term holders have been selling aggressively, with roughly 60,000 BTC offloaded so far-marking the largest single-day sell-off in the current phase.
  • Miners are also adding to the pressure, as outflows increasingly outweigh incoming supply.

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2026-02-06 10:15