Bitcoin (BTC) recently saw its biggest single-day loss since August 2024, which pushed it below the short-term holder (STH) realized price. The recent downtrend also appeared to have spooked institutional investors after Cathie Wood’s ARK Invest offloaded $9M in spot BTC ETFs. As fear grips traders, has Bitcoin entered bear market territory, or is a price recovery looming?
Bitcoin price today trades at $88,246 with a daily high of $89,508.
Bitcoin Price Shows Bear Market Signs as Instutions Offload BTC
Bitcoin price is under bearish stress as institutions, including ARK Invest, offload BTC. The asset manager sold nearly $9M from its own ARK 21Shares Bitcoin ETF (ARKB) before buying $8.8M of Coinbase stock after the price dropped by 6%. The sale coincided with a record $1.1 billion spot Bitcoin ETF outflows.
The weak demand from institutions coincides with a downtrend in US stock markets after the S&P 500 flashed a sell signal. Financial markets have been reeling amid inflation fears and President Donald Trump’s tariff policies.
Is Bitcoin in a Bear Market?
The recent drop in Bitcoin price caused jitters over whether the asset may be entering a bear market. Several factors suggest that while there is room for recovery, the bearish sentiment is strong.
Bitcoin has dropped below the short-term holder realized price of $91,540 indicating that these holders are now sitting in losses. This may cause potential panic selling and increased downward pressure leading to a bear market.
The realized price of short-term holders is now a key resistance level as this cohort will likely start selling if Bitcoin price registers an uptrend past $90,000.
Bitcoin holders also saw their biggest single-day loss since August 2024. Realized losses from traders selling during the downtrend hit a 2025 high of $1.7 billion. Such intense losses often cause negative market sentiment that may fuel a price drop.
Additionally, the Bitcoin Fear and Greed Index has plunged to 21, its lowest level in three months. This shows a state of extreme fear and a strong bearish sentiment that may weigh on the price.
Long-term Bitcoin Holders Accumulate Bitcoin
Despite the institutional selling and short-term holder panic, long-term Bitcoin holders are buying Bitcoin. These traders recently bought 20,000 BTC, causing the Long Term Holder Net Position Change to flip positive for the first time in nearly five months.
Long-term holders tend to buy when prices are low are sell during rallies. However, while this accumulation shows a bullish Bitcoin price forecast, it still needs a surge in institutional and retail demand for a sustained uptrend.
Bitcoin Price Analysis – What’s Next for BTC?
Bitcoin price fell below a multi-timeframe support level of $92,534, which pushed short-term holders into losses. According to analyst Patric H, BTC needs to recover this level to trigger renewed bullish momentum and resume its uptrend past $100K to $116,000.
However, if Bitcoin turns this support level into strong resistance, and falls below the 200-day EMA, it could drop to around $81,500.
Bitcoin price still has room for a leg up past $90,000 if institutions and retail traders start accumulating the dip. However, selling pressure needs to ease for a sustained price recovery.
Frequently Asked Questions (FAQs)
Bitcoin price dropped below the short-term holder realized price yesterday causing panic selling as trader sentiment dropped to “extreme fear.” However, BTC remains above its 200-day EMA, making a price recovery possible.
Institutions could be selling Bitcoin due to concerns around the impact of President Trump’s tariff policies.
Bitcoin’s key support level stands at around $92K. If it recovers and turns this resistance into support again, it could resume its uptrend toward $100,000.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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