More than 148,000 Bitcoin have been divested at a loss by short-term holders, intensifying predictions from analysts that the price of BTC may dip below $90,000.

Key Takeaways:

• New Bitcoin investors sold over 148,000 BTC at a loss recently.
• Analysts agree that if Bitcoin’s price falls below $93,000, it could signal a downtrend to below $90,000.

On Sunday, Bitcoin (BTC) price fell to $92,000, nearly erasing all gains this year as investor sentiment remained low despite the end of the U.S. government shutdown.

Selling Pattern of “Weak Hands”

Bitcoin’s price has retraced 25% since hitting $104,000, with traders noting the necessity for Bitcoin to reclaim levels above $105,000 to avoid further declines.

On-chain data from CryptoQuant revealed that the sales prominently came from newer Bitcoin owners who held the asset for less than a month and sold during significant losses.

“This fire sale occurred with Bitcoin at roughly $96,853, below their average entry price of $102,000-$107,000,” said CryptoQuant analyst Crazzyblockk, emphasizing that this represents not profit-taking but substantial loss realization.

The latest drop has traders predicting deeper corrections, potentially pushing the price below $90,000.

Traders and analysts suggest that Bitcoin’s support may hold around $100,000, making this level critical for price stability going forward.