Bitcoin has fallen to $96,770, extending its 24-hour decline to 6.45% as long-term holders (LTHs) unleash one of the largest selling waves of the year. The market cap has slid to $1.93 trillion, while trading volume surged more than 45%, signaling heavy distribution and widespread liquidations. The TradingView chart shows a persistent downtrend from the $103K region, followed by a steep breakdown below earlier support levels.
As selling pressure intensifies, Bitcoin’s technical and on-chain indicators point to deeper weakness forming beneath the surface.
Long-Term Holders Drive the Sell-Off
On-chain data reveals that LTH wallets holding Bitcoin for more than 155 days have sharply accelerated selling, marking the strongest wave since early 2024. Dormant wallets dating back to 2010–2013 moved over $100 billion worth of BTC, injecting a sudden spike in available supply.
This influx of aged coins typically signals institutional profit-taking, strategic reallocation, or stress-driven distribution from early miners. Because LTHs historically act as the market’s “strong hands,” their selling often marks pivotal turning points.
The timing proved damaging: fresh supply flooded the market during an already weak demand environment, amplifying volatility across spot and derivatives markets.
Cascading Liquidations Follow Supply Surge
The surge in LTH selling collided with thin liquidity, triggering automatic liquidations across major exchanges. As Bitcoin broke below psychological levels, long positions were forcefully unwound, deepening the decline and driving prices toward the $96K zone.
Rising liquidation volume confirms that much of the sell pressure came from leveraged traders unable to hold positions during the sudden drop. Every bounce attempt was met with renewed selling, highlighting how aggressively the market reacted to the influx of decade-old coins.
Technical Indicators Confirm Bearish Momentum
Momentum indicators now align with on-chain selling pressure.
The 30-day RSI at 36.15 shows Bitcoin drifting into oversold territory, reflecting weakening strength among buyers. At the same time, the MACD reading of –362.47 confirms a widening bearish trend with no immediate signs of reversal.
Together, these indicators suggest that market sentiment remains firmly negative until buyers can reclaim control at higher levels.
Critical Support: $97,988 Must Hold
Bitcoin is currently trading just below the crucial $97,988 swing low, a level that has acted as an intraday support in recent sessions. If BTC loses this line decisively, the chart opens the door for a deeper correction.
Analysts warn that a break below $97,988 could accelerate a slide toward the $90,000 region, where the next major liquidity cluster sits. Holding above this area is essential to prevent further liquidation cascades.
Chart Breakdown: Accelerating Sell-Off and Failed Rebounds
Bitcoin’s chart shows increasing volatility as the price steadily trended downward from the $103,200 zone. After a series of lower highs, the trend fully broke around $100,500, opening the door to a rapid sell-off.
The final crash came in the 05:00–06:00 UTC window, where Bitcoin plunged below $98,000, a level that had previously acted as intraday support. Heavy red volume bars confirm intense selling pressure from both leveraged traders and spot markets.
Despite brief recovery attempts just above $99,000, Bitcoin failed to sustain momentum, sliding back into the $96,000 range. The rejection suggests a lack of bullish confidence at current levels, which may lead to drop around the $93,000 level.
Investor Behavior: High Volume Shows Capitulation Signs
The 45% jump in 24-hour volume reflects rising trader panic:
- Large positions were liquidated as Bitcoin breached multiple support levels.
- Short-term holders appear to be exiting aggressively.
- High-frequency trading activity has increased around key liquidity zones.
The combination of rising volume and falling price is typically a bearish signal, indicating capitulation rather than accumulation.
However, historically, similar conditions sometimes precede short-term relief rallies once selling exhausts, but as of now, the chart does not show clear reversal patterns.
What Levels to Watch Next
Bitcoin is currently hovering around $96,700, but key levels from the chart and prior reaction zones identify several critical areas:
- $95,500–$96,000: First major support where buyers may attempt consolidation.
- $98,500: Immediate resistance – reclaiming this level would signal stabilization.
- $100,000: Psychological barrier that Bitcoin must reclaim to restore bullish momentum.
If BTC loses the $95K region, deeper pullbacks toward $92K–$93K become possible.
