Bitcoin is clinging to $36,000 as data suggests the sell-off in BTC price came from short-term holders

Bitcoin (BTC) found a new home at $36,000 until May 7, when volatility finally cooled into the weekend.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

Terra has lost at least $250 million to Crunch

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $36,000 overnight after losing 12% in just 72 hours.

The pair is still near its lowest since late February, but at the time of writing had avoided a repeat of the 2022 lows despite low-volume weekend market conditions.

In his last Twitter update on May 6, popular trader Anbessa highlighted the projected support level for buying bitcoin in what he called a “fakeout” zone — a zone that starts at just under $33,000.

While some eyed profit opportunities, the losses of others could not be hidden, most notably those of Luna Foundation Guard (LFG), the nonprofit affiliated with blockchain protocol Terra, which this week sold $1.5 billion worth of BTC. Bought dollars over-the-counter.

According to data from on-chain monitoring resource BitInfoCharts, LFG was down over $240 million on its BTC stash at the time of writing, not counting the week’s most recent purchase.

As Cointelegraph reported, Terra and its co-founder Do Kwon remain committed to buying unlimited amounts of BTC to shore up their US dollar stablecoin, TerraUSD (UST).

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LFG wallet data overview (screenshot). Source: BitInfoCharts

Bitcoin-skeptical gold bug Peter Schiff, meanwhile recommended that whales were responsible for keeping BTC/USD at $36,000.

February buyers may have exited BTC positions

Analyzing possible reasons behind the extent of Bitcoin’s losses beyond stock markets, on-chain analytics platform CryptoQuant found that speculators may have had an overriding impact on the week’s course.

See Also: “Someone Explodes” – Bitcoin Sees 2022 Volume Record in Hope Capitulation is Over

As it became known on that day, the exchange inflows were coins that were dormant for a maximum of three months and therefore probably belonged to more speculative investors.

Three months ago, around early February, BTC/USD had started to rise rapidly after hitting lows of $32,000. This means that these investors would have broken even this week.

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BTC/USD 1-day candlestick chart (Bitstamp) with potential buy and sell areas highlighted. Source: TradingView

“According to CryptoQuant data, the drop over the past two days could be dominated by short-term holders. On the 5th and 6th, a total of 11.76k “young” BTC held for less than 3 months flowed into the exchange,” said journalist Colin Wu commented on the numbers.

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Age table for exchange coins. Source: CryptoQuant

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