Bitcoin has fallen far from an all-time high of $109,590 on January 20 to a low of $77,041 on the first week of March. Inheritance indicts showed BTC corrected 30%, this time was occurring the second time during the present bull-run. Previous bull runs displayed similar retracement, but the dynamics here are acting differently, raising doubts for Bitcoin in the near term.

Outflows from Spot ETFs Intensify Selling Pressures

Bitcoin fall was accelerated, courtesy of continued outflows from spot bitcoin ETFs. ETFs reported net withdrawals of 921,4 million dollars over the course of the last week making it clear that there are no institutional hands investing in. With the absence of big buyers in the market, short-term holders are driving with even more volatility. 

Short-Term Holders Are Behind Wave of Capitulation

The Bitfinex report insists that the return of the Short-Term Holder-Spent Output Profitability Ratio (STH-SOPR) resulted in identifying the present market situation. During the moving average cycle, the STH-SOPR has persistently been underneath zero, revealing that short-term holders encounter a challenging environment to bear the loss on the sale. Such historical conditions denote capitulation, which implies that there will be a reversal of the trend if wearies drop a tad amid sell-offs. 

Prospects of Bitcoin

Unless institutional demand returns, we expect some consolidation and maybe a rebound with $56,000 over the long haul. In the meantime, the more immediate stakeholders might look at adding here. The bullish potential for BTC will depend on the pick-up or drop in demand.