Bitcoin (BTC) is facing challenges as it tries to maintain its value above $80,000. The leading cryptocurrency in terms of market cap has dropped by 3% today and has seen a 13% decline in the first quarter, currently standing about 30% lower than its all-time high in January.
Recent data from Glassnode shows that short-term holders, who are typically seen as speculators entering the market during peak prices or periods of market excitement, have sold over 100,000 BTC (approximately $8 billion at current prices) since February. This could indicate their efforts to minimize losses or secure profits before further price drops.
This decrease has pushed the bitcoin price below its 200-day moving average of $86,300, a crucial indicator for long-term market trends. Other risk-on investments, like U.S. equities represented by the S&P 500, have also fallen below this level, with the index currently at 5,537 while the 200-day average sits at 5,738.
Commercial litigator Joe Carlasare, who supports bitcoin, has noted that when the S&P 500 struggles to surpass the 200-DMA, historical patterns suggest that lower prices may be on the horizon. “The S&P 500 continues to struggle to reclaim the 200 day,” he shared on X. “If we can’t get a big rally above it soon, it makes sense to expect lower prices. Look back historically at what happens when we lose the 200 day.”
