Short-term holders are back in 83% of their total holdings being in unrealized losses right now, a very similar level to all previous local bottoms.

As we continue our current downturn and are still struggling to reach the important levels of above $28k, but instead remain at critical levels where we could drop down further if just one bad news comes in. So obviously we would want to know what will happen next with the market or at least what could possibly happen.

While doing so, I won't look at some fancy TA indicators, but rather something way more fundamental… Let‘s think first, which entity in Crypto is the most dominant to make quick moves during such bearish scenarios as right now?

You will come to the answer of the short-term holders, those who are just getting ready to sell BTC at the best possible time. Which would preferably be some local top, but they are also quick to sell once they fear that Crypto could drop down way more from here and they have to get out before they lose even more money.

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BTC short-term holder Supply in Profit chart showing 83.7% of short-term holders in unrealized losses

This chart is the perfect representation of that, showing the unrealized losses of short-term holders, which is when short-term holders will get ready to sell off, due to fear and paper-handing. Right now we have 83% of the whole short-term holder supply in losses, which is about the same levels as during the previous local bottoms and just slightly lower than during our bear market bottom of the FTX collapse.

So it is pretty safe to say that we are in local bottom territory for one of the first time in this whole year, which once again shows just how severely underperforming BTC has been in the past few weeks and yet it constantly stayed above $25k. Seems like baring a new black swan event $25k is the floor for us, which is quite bullish..