Bitcoin (BTC), the cryptocurrency, was the dominant player during Tuesday’s European trading session as BTC/USD dropped below the $70,000 mark for the very first time in April.
Due to the high pressure of selling and investor losses, analysts believe that Bitcoin is now in a new distribution phase.
Takeaways from the conference:
- Bitcoin distribution is re-established as investors who hold bitcoins for a short time sell them at a profit and the exchange flow continues to increase.
- Bitcoin market sentiment has fallen back to its previous levels “extreme fear,” The spot Bitcoin ETFs experienced 11 days straight of withdrawals.
- Whale activity surged at its highest since April signaling possible accumulation in spite of broader market weaknesses.
Bitcoin holders capitulate
The STH-SOPR (Short-Term Holder SOPR) measure, which measures whether or not short-term investors are making a profit, has dropped below 1. fading US-Iran hopes for a ceasefire pushed Bitcoin price below $70,000.
Related: Bitcoin bulls consider fresh positions after BTC price drops under $71K
At 0.98 currently, the value is shows The fact that the losses are being realized again in the short term suggests recent investors, rather than structurally long-term distributions of income, as primary sellers.
Source: CryptoQuant. Bitcoin Short-term Holder SOPR. Source: CryptoQuant
Chart above depicts a similar situation in February following the election of US President Donald Trump announced 15% blanket tariffs The Supreme Court has ruled that the Supreme Court is not constitutional ruling them illegal. As the price of BTC rose to $65,000, uncertainty increased.
Six- to 12-month holders also exhibit the same behavior. “activated potential selling positions,” Rei Analyst, CryptoQuant said QuickTake Note on Tuesday.
Volume of BTC deposted to exchanges (yellow column) by holders who have been with them for six-12 months has steadily increased since May. The last time this happened was in October 2025, when Bitcoin’s all-time record high exceeded $126,000. Since then, the BTC has continued to fall.
The group has been putting on a heavy supply at this point. “huge barrier to the recovery momentum,” “The analyst stated, adding”
“This exchange inflow volume needs to be well absorbed; otherwise, $BTC will face deeper correction waves.”
Bitcoin exchange SOPR age bands. Source: CryptoQuant
According to Glassnode, the realized profit/loss of Bitcoin, which is a ratio that measures how much money has been made or lost onchain in terms of gains and losses, dropped from 0.4 to -0.87 last week. This represents a 135% rise.
“This reflects a period of heightened selling pressure where market participants are increasingly willing to divest their holdings at a loss,” The onchain data supplier said In its latest Market Pulse Report, the report adds:
“Bitcoin is in a distribution phase with deteriorating breadth.”
Bitcoin real profit/loss ratio Source: Glassnode
Bitcoin sentiment falls to “extreme fear” Then, you can also check out
Crypto Fear and Greed Index hit On Tuesday, 23 returning to the “extreme fear” The market was very active between the beginning of February and April.
The index gauges market sentiment using volatility, momentum, trading volume, and social signals. Scores below 25 are considered negative signals “extreme fear” or risk aversion, while 26–49 reflects cautious positioning or “fear,” With higher readings, it indicates improving investor confidence “greed.”
Crypto Fear and Greed Index Source: Alternative.me
After the index moves below 25, it follows that latest sell-off in the crypto marketThe global cryptocurrency market cap has dropped 7% in the past week. Bitcoin dropped 9.3% During the same time period.
The exchange traded funds that track Bitcoin (ETFs), have been launched. recorded a string of outflows Farside Investors’ data shows that the largest outflow over the 11 days was $733.4 million on May 27. On May 27, the largest outflow was $733.4 millions.
Chart of Spot Bitcoin ETF flows Source: Farside Investors
Other analysts also saw signs that the Bitcoin bulls are on the right track.
Bitcoin has dropped to below $70,00. “network saw most transactions valued at $100,000 or more since April 22,” Santiment, a platform for onchain analysis said In a post on Tuesday X, add:
“This is historically a strong sign of whale accumulation.”
BTC $100K+ transactions Source: Santiment
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Source: cointelegraph.com
