Bitcoin Price, Crypto Market Shakeout Underway: PlanB Invalidates Bear Twist

Key Insights:

• New BTC investors sold at -3.5% Bitcoin price losses, driving a market shakeout.
• PlanB said the bull cycle continued despite recent price drops.
• U.S. spot ETFs posted $219.1 Million in inflows after six days of outflows.

Bitcoin (BTC) price saw a shakeout this week as new investors sold below their purchase prices. Despite this negative price outlook, Stock-to-Flow creator PlanB said the market is still in a bull cycle.

Market performance markers like the U.S. spot Bitcoin ETFs turned positive after six days of outflows. The stash, led by BlackRock, recorded strong inflows on Monday, August 25.

New Bitcoin Troubled as Bitcoin Price in Loss

On-chain data showed that the recent sell-off was driven mainly by new Bitcoin investors.

Those holding the asset for less than one month, called short term holders (STH), were down by about 3.5% on average. Many of them sold, adding pressure to the market. This sale reduced the supply held by this short-term group.

In contrast, those who had held Bitcoin for one to six months stayed in profit, with average gains of 4.5%.

It is important to add that this cohort did not sell in large numbers. This showed that the exits came mostly from very recent buyers.

Analysts described the event as a normal shakeout. Coins were moving from new holders, who bought at higher prices, to others with a lower cost basis.

Older investors tend to have more patience. By taking coins from weaker hands and placing them with stronger holders, the market removed some future selling pressure.

PlanB Says Bitcoin Price Bull Market Still Intact

In a separate update, PlanB, the analyst who created the Stock-to-Flow (S2F) model, gave his view on the current Bitcoin price outlook.

Bitcoin price was trading around $110,267 after hitting an all-time high of $124,457 earlier this month.

PlanB shared his Bitcoin Market Cycle chart, which uses colors to track phases. The chart showed many red dots, a sign he linked with a bull market.

Some observers asked why this cycle had more red dots than in the past, raising questions about a possible distribution imbalance.

He said the number of red dots did not matter. The signal, he explained, came from on-chain data such as realized prices, coin days destroyed, and holding patterns.

Past bull runs, he said, were all different. Earlier cycles often lasted one year with big multiples of 10x or even 100x.

The last cycle was shorter, about seven months, with a sixfold gain. This time, he suggested, the bull market could run for two years.

PlanB said he saw no signs of a bear market. He described the current stage as another leg of the ongoing bull cycle.

ETF Inflows Return After Six Days of Outflows

After six straight days of outflows, U.S. spot Bitcoin ETFs recorded a strong rebound on Monday, August 25.

Monday saw combined net inflows reaching $219.1 Million. BlackRock’s iShares Bitcoin Trust (IBIT) brought in $65.6 Million, the largest of the group.

In addition, ARK 21Shares (ARKB) followed closely with $61.2 Million.

Fidelity’s Wise Origin Bitcoin Fund (FBTC) gained $15.2 Million, while Grayscale’s GBTC added $7.4 Million.

The return of inflows came after a difficult week when funds had seen money leave for several days in a row.

Market experts said the fresh demand may have been bargain hunting after the recent price drop. It also showed that investors, both retail and institutional, were willing to add exposure again.

ETF flows are often seen as a signal of market sentiment. The strong inflows on Monday suggested renewed interest and confidence.

When placed alongside the resilience of medium-term holders and PlanB’s analysis, the data pointed to continuing support for Bitcoin.