Bitcoin [BTC] started the second week of September with a bullish trend, closing above $57K, but soon dropped to $56,407. The decline followed a rise in long positions, suggesting a potential short-squeeze. Long-term holders (LTH) remain confident, which historically correlates with good investment returns when combined with low prices. However, short-term holders show a lack of confidence, highlighted by a significant BTC sell-off. The $56K support level is pivotal for Bitcoin's future direction, with a potential dip to $40K anticipated before any rebound. Market indicators like the MVRV ratio suggest average holder profit, but a market top is unlikely without external economic changes such as a Fed rate cut.