Market analyst MorenoDV_ reports muted reaction from short-term Bitcoin (STH) holders to the combined US and Israeli attack on Iran. The observation is crucial considering the previous sell-offs that have dominated the market in recent months.

Bitcoin STH’s Reaction to Geopolitical Conflict Signals Seller Exhaustion – What’s Next?

Short-term Bitcoin holders refer to the cohort of investors who have purchased Bitcoin in the last 155 days. They are described as the most reactive group of investors, so their activity is often indicative of short-term price volatility and direction.

According to MorenoDV_ w QuickTake post On February 27, these short-term bondholders show a moderate market reaction to increased geopolitical tensions in the Middle East after the United States and Israel launched a coordinated attack on Iran. By applying Bitcoin STH P&L data to exchanges 24 hours a day, the renowned market analyst reports subdued inflows into exchanges, indicating a lack of panic-taking in profits or capitulation of losses, even despite an event that has triggered massive sell-offs in the past.

MorenoDV_ explains that this change in market behavior occurred after the gigantic market capitulation on February 5-6, when short-term Bitcoin holders sent 89,000 BTC to exchanges at a loss within 24 hours. After this event, the inflow of funds caused by losses appears to steadily decrease, indicating sellers are exhausted or a positive shift from panic to patience.

Regarding the conflict between the US, Israel and Iran, there was no edged enhance in STH inflows even as prices dropped to around $63,000-64,000. MorenoDV_ states that this crucial observation suggests a complete exit of delicate hands from the market and significant absorption of recent liquidation pressure.

Looking ahead, if STH holders maintain a muted response to other bear market triggers, it will suggest a market stabilization phase that has historically preceded a bull market recovery. On the other hand, an enhance in STH exchange proceeds and losses would indicate that the market collapse is not complete and investors are still exposed to the risk of further decline.

Bitcoin price overview

At the time of writing, Bitcoin is trading at $67,007, reflecting a slight rebound of 4.41% over the last 24 hours. In both cases, daily trading volume increased by 0.81% and amounted to $40.81 billion.

The top cryptocurrency continues to trade in the specific $60,000-$70,000 range as seen throughout much of February. Although analysts continue to speculate about the bottom of the cycle, there are no conditions for a reversal of the upward trend, such as a revival in the inflow of ETF funds, a edged enhance in demand for LTH or a dovish Fed outlook.