Recent Bitcoin Investors Drive Market Selloff, Analysts Eye $70K Support Level

Investors who bought Bitcoin near its January all-time high of $109,000 are now rushing to sell as prices fall, according to crypto analytics firm Glassnode. The company’s latest analysis suggests Bitcoin could potentially stabilize around $70,000 if current selling trends continue.

Glassnode’s March 11 market report identifies a significant selloff from recent high-price buyers, creating what they describe as “intense loss realization and a moderate capitulation event” in the cryptocurrency market.

New Investors Face Mounting Losses

The flood of buyers who entered at higher price points shows clearly in market data. The short-term holder realized price—measuring the average purchase price for those holding Bitcoin less than 155 days—has climbed dramatically from $62,000 in October to $91,362 currently, representing a 47% increase in just five months.

With Bitcoin trading at $81,930, these newer investors now face average unrealized losses of approximately 10.6%, pushing many to sell their holdings. Glassnode notes that these metrics indicate “market momentum and capital flows have turned negative,” reflecting diminishing buyer demand as “investor uncertainty affects sentiment and confidence.”

Analysts Predict Potential Price Floor for Bitcoin

Short-term investors holding Bitcoin between the $71,300 and $91,900 price range are now “deeply underwater,” according to Glassnode. The firm believes Bitcoin could find support around $70,000, stating “the probability of forming a temporary floor in this zone is meaningful, at least in the near term.”

• Enjoy the best deals with Stake’s promo code. Click and find out.

Market research firm 10x Research characterized the situation as a “textbook correction” in their March 10 analysis, noting that “approximately 70% of all selling came from investors who bought within the last three months” during Bitcoin’s recent dip below $80,000.

Industry veteran and BitMEX co-founder Arthur Hayes shares a similar outlook, suggesting Bitcoin may retest $78,000 before potentially dropping to $75,000 if support fails.

Despite the current pressure, Bitcoin has shown resilience with a 7.5% price increase over the past 24 hours as U.S. markets stabilized following earlier uncertainty stemming from President Trump’s comments about a possible recession.