- Short-term Bitcoin investors have dumped 17.8K BTC within 24 hours.
- Bitcoin's negative sentiment index reached its highest level this month at -20%.
Within the past 24 hours, Bitcoin [BTC] touched a local dip at $98,000 before rebounding to $101,000. The downward pressure primarily stems from increasing geopolitical tensions.
Amid concerns about potential widespread conflict, investors have engaged in aggressive selling.
Increasing Bitcoin Selling Pressure
Data from CryptoQuant analyst Axel Adler indicates intense selling activity throughout the day.
This is reflected in 14.7K BTC being sold at a loss when the price dropped below $100,000, marking a capitulation phase.
Source: CryptoQuant
During the same period, 3.1K BTC was sold at a profit on centralized exchanges. In total, short-term investors dumped 17.8K BTC, with a net capitulation of 11.6K BTC.
The sudden surge in selling activity reflects a dramatic shift in investment sentiment as fears escalate. Accordingly, Bitcoin's Advanced Sentiment Index dropped to -20%, indicating strong selling pressure.
Source: CryptoQuant
The negative sentiment reached its monthly peak, with selling pressure evident in the depth of the negative delta in Taker order volume, showing the sellers' increasing dominance.
This development coincides with Bitcoin breaching the $100,000 threshold.
As Open Interest declines, traders are forced to close leveraged positions, causing sudden position liquidations.
Specifically, 2.6K BTC from longing positions were liquidated, demonstrating increasing tension in the futures contract market.
Source: CryptoQuant
The negative shift in the derivative market indicates growing fear among investor communities.
However, sentiment began recovering as BTC returned to $101,000. The Advanced Sentiment Index increased from 20% to 37%, while Volume Delta reduced its negative depth, signaling market stabilization.
Nevertheless, Volume Delta remains in negative territory, suggesting the recovery is only local. Investors are cautiously accumulating oversold positions, taking advantage of the price correction.
Source: CryptoQuant
Exchange Netflow data shows buying activity returning as the figure once again slightly turns negative. Currently, Exchange Netflow fluctuates around 1.8K BTC, demonstrating the return of dip-buying funds.
However, doubts persist in the market amid escalating Middle Eastern tensions.
Potential Future BTC Developments
The recent price drop and increasing selling pressure occurred against the backdrop of US attacks on three Iranian targets, keeping the market in a high-alert state.
If geopolitical tensions subside, a complete recovery is highly likely, with buying pressure returning and BTC targeting the $104,238 zone.
Conversely, if conflicts continue escalating, market sentiment could become more pessimistic, triggering a new decline. In this scenario, BTC would likely find support around the $97,766 threshold.
