Bitcoin’s short-term holders are experiencing significant losses, potentially setting the stage for a market reversal. Long-term holders are beginning to exert selling pressure, typically seen near market tops or during stress events.
What to Know:
- Bitcoin’s short-term holders are experiencing significant losses, potentially setting the stage for a market reversal.
- Long-term holders are beginning to exert selling pressure, typically seen near market tops or during stress events.
- Despite retail fear and recent price drops, long-term demand and accumulation patterns suggest potential recovery.
Bitcoin is currently undergoing a period of intense selling pressure from short-term holders, creating conditions that may lead to a significant market shift. On-chain data indicates that these holders are offloading their assets at a loss, signaling a potential capitulation phase. This activity could pave the way for long-term investors to accumulate, potentially leading to a market recovery.
XWIN Research data reveals that Bitcoin’s Short-Term Holder Spent Output Profit Ratio (STH-SOPR) has fallen to approximately 0.97, remaining below 1.0 for several weeks. This level suggests that recent Bitcoin buyers are selling at a loss, a pattern often observed near major turning points in Bitcoin cycles. More than 65,000 BTC have been moved to exchanges at a loss, highlighting the extent of the selling pressure.
BTC’s Short-Term Holder SOPR has fallen to ~0.97 and stayed below 1.0 for weeks, a pattern seen near past cycle bottoms.
While short-term holders dominate daily market activity, long-term holders are also starting to exert selling pressure. Spent Transaction Output (STXO) data indicates that while STH flows remain high, LTH STXO has spiked, a pattern typically observed near market peaks or during significant market stress. This shift suggests a broader market correction may be underway.
Despite the current market conditions, there are constructive signs for Bitcoin’s future. Realized losses have reached levels that historically precede recoveries, and long-term holders are showing record demand. Countries like El Salvador have also taken advantage of the dip, adding to their Bitcoin reserves, indicating confidence in its long-term value.
The current market dynamics, characterized by short-term capitulation and emerging long-term demand, suggest a complex outlook for Bitcoin. Investors should closely monitor these trends and consider the potential for both continued volatility and eventual recovery as the market navigates this critical phase.
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Source: Original article
Quick Summary
Bitcoin’s short-term holders are experiencing significant losses, potentially setting the stage for a market reversal. Long-term holders are beginning to exert selling pressure, typically seen near market tops or during stress events. Despite retail fear and recent price drops, long-term demand and accumulation patterns suggest potential recovery.
Source
Information sourced from official Ripple publications, institutional research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP daily.
Editorial Note
Opinions are the author's alone and for informational purposes only. This publication does not provide investment advice.
