Bitcoin Price Plunges as On-Chain Analysis Signals Capitulation
On-chain analysis reveals Bitcoin’s price plunged sharply after the US market opened, pushing BTC below $90,000. The Coinbase Premium index showed selling momentum halved but remained too weak to trigger a bounce. CryptoQuant’s Head of Research highlighted four drivers behind the decline: Bitcoin ETFs as net sellers, corporate treasury liquidations, modest strategic reserves purchases, and over 800,000 BTC moved or sold in the past 30 days. Short-term investors intensified panic selling, with SOPR data showing average purchase costs falling from $110,800 to $109,762. Analysts warn this could be one of the harshest capitulation phases in history. Bitcoin still holds near the $100,000 mark. Traders should monitor on-chain metrics and SOPR for signs of stabilization and potential rebound.
Bearish
The coordinated selling by ETFs and panic-driven short-term investors creates sustained downward pressure on Bitcoin. On-chain metrics like the Coinbase Premium and SOPR data confirm capitulation levels not seen since prior major downturns. Historically, heavy ETF sell-offs and record-level panic selling tend to exacerbate short-term declines before any recovery. While the $100,000 zone offers long-term support, traders should expect continued bearish momentum in the near term until on-chain indicators show a decisive rebound.