Bitcoin (BTC) Faces Continued Sell Pressure Amid Weak Demand

Bitcoin (BTC) continues to encounter significant sell pressure, primarily from recent investors, as the cryptocurrency market grapples with weak demand and diminishing accumulation since the beginning of 2025, according to Glassnode. The current market dynamics are reminiscent of the August 2024 crash when Bitcoin fell to $49,000.

Post-Euphoria Distribution

The cyclical nature of Bitcoin's market, characterized by alternating phases of accumulation and distribution, has currently entered a distribution phase. The Accumulation Trend Score, a tool that tracks these shifts, indicates a persistent sell-side pressure with values remaining below 0.1 since January 2025. This trend aligns with Bitcoin's price correction from $108,000 to $93,000.

The current market scenario shows a lack of substantial accumulation, further exacerbated by external factors such as liquidity constraints and geopolitical tensions, including recent U.S. tariff issues and the Bybit hack.

Declining Demand Momentum

Market participants have shown a notable reduction in demand, with significant buying activity concentrated between $95,000 and $98,000. However, this buying behavior has waned considerably since late February, as confidence in the market has weakened amid tightening liquidity conditions and macroeconomic uncertainties.

The Short-Term Holder (STH) Spent Output Profit Ratio (SOPR) has been observed to be below 1, indicating that short-term investors are selling at a loss. This trend is further supported by the Short-Term Holder Coin Days Destroyed (STH-CDD) metric, which highlights panic-driven selling, mirroring previous capitulation events.

Sizing Up Fear

The market's current bearish phase is further reflected in the statistical models based on Short-term Holders' cost basis. These models suggest that the lower bound of Bitcoin's price, where short-term holders are deeply underwater, lies between $71,300 and $91,900. This range is significant as it aligns with a liquidity gap that could potentially form a temporary support level.

Indicators of fear among short-term holders, such as the STH-SOPR and STH-CDD, underscore the likelihood of continued sell pressure and potential for further price corrections. Investors are advised to monitor these metrics closely for signs of market stabilization.

Overall, the report from Glassnode highlights the challenges facing Bitcoin as it navigates a period of distribution, with weakened demand and increased sell pressure from recent top buyers. Investors are urged to exercise caution as the market seeks to find a new equilibrium.