Bitcoin (BTC) continues to face challenges as it attempts to maintain a position above $80,000. The cryptocurrency, which leads the market by cap, has dropped 3% today and has seen a decrease of 13% in the first quarter, sitting around 30% below its highest recorded value from January.

According to Glassnode data, short-term holders—those who have owned bitcoin for less than 155 days—mainly act as speculators, typically entering the market during moments of price surges or heightened optimism. Since February, they have sold more than 100,000 BTC (approximately $8 billion at current valuations), suggesting they may be looking to mitigate losses or secure profits before further price reductions occur.

Key Highlights:

• Short-term bitcoin holders have liquidated over 100,000 BTC since February, leading to a 30% drop in its value from its peak.
• The S&P 500 is currently over 200 points under its 200-day average, with data indicating potential declines if it does not bounce back above this crucial level.

The recent downturn has caused Bitcoin’s price to fall beneath its 200-day moving average, which stands at $86,300. This average is an important indicator of long-term market movements. Moreover, the S&P 500 has also fallen below that line, currently around 5,537, while the 200-day benchmark is at 5,738.

Joe Carlasare, a commercial litigator who supports bitcoin, commented, “The S&P 500 continues to struggle to reclaim the 200 day. If we can’t get a big rally above it soon, it makes sense to expect lower prices. Look back historically at what occurs when we breach the 200 day.”