The Bitcoin market is exhibiting signs of stress and uncertainty driven by unwinding leveraged long positions and fresh speculation regarding potential selling from Bhutan’s significant holdings.
Bitcoin is currently trading near $116,500, reflecting a modest 0.85% decline over the reporting period. Market analysts point to growing short-term downside risks based on technical indicators and derivatives market activity.
Stress is particularly evident in the derivatives sector, where leveraged long positions are increasingly being unwound. This trend signals fading optimism and growing caution among traders regarding immediate price appreciation.
Adding potential selling pressure, speculation has intensified surrounding Bhutan’s substantial Bitcoin holdings, currently valued near $1.2 billion. This followed the transfer of Bitcoin worth approximately $59 million to a new address, fueling market uncertainty about sovereign asset liquidation.
Technical analysis reflects the cautious mood. Key indicators like the Relative Strength Index (RSI), sitting near 53.2, and the Moving Average Convergence Divergence (MACD), suggest neutral to bearish momentum. The $114,000 price level is viewed as critical short-term support if downward pressure persists.
For Bitcoin’s price to regain bullish momentum, market participants highlight the importance of decisively reclaiming the $118,000 threshold.