Bitcoin short-term holders are selling at a loss again, signaling either a healthy reset or risk of a deeper correction.
Fresh buyers keep entering the Bitcoin market as losses rise, showing new demand despite short-term selling pressure.
Market flows reveal a battle between profit takers and long-term holders, shaping whether Bitcoin rebounds or corrects further.
Bitcoin’s short-term holders are back to selling at a loss for the first time since January 2025. This shift comes as the market tests critical resistance levels, raising concerns over momentum and sustainability.
According to CryptoQuant analyst Kripto Mevsimi, the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) has slipped below 1. This metric shows that investors who bought recently are now realizing losses instead of profits.
Source: CryptoQuant
Besides, the timing of this reset is crucial because Bitcoin has been consolidating around the $80,000 zone. Hence, the market views this loss-selling event as a significant barometer of overall health. Historically, such moments can either signal deeper corrections or act as healthy resets before stronger rallies emerge.
Market Behavior Signals Mixed Trends
Additionally, the chart from CryptoQuant highlights how STH actions often align closely with Bitcoin’s volatility. When prices rose toward $115,000 earlier this year, most short-term holders sold in profit. However, the decline to mid-$70,000 levels expanded loss selling. Consequently, the market now sits at a crossroad.
Moreover, Glassnode data adds another dimension to this evolving trend. Its Supply by Investor Behavior metric shows a notable rise in holdings by First Buyers. Over just five days, supply from new investors grew from 4.88 million BTC to 4.93 million BTC. This fresh demand indicates that, despite short-term weakness, new participants continue entering the market aggressively.
Source: Glassnode
Investor Flows Shape Market Outlook
Momentum buyers and conviction holders have also shown stronger activity during Bitcoin’s latest rally. However, when prices surged above $200,000, profit-takers locked in gains by increasing their selling close to peak levels. Therefore, the distribution of supply shows a struggle between long-term, steady buildup and speculative exits.
Therefore, the outcome of this change hinges on how quickly the market responds to the resurgent push to sell. If buyers continue stepping in, the reset may strengthen Bitcoin’s foundation. However, if momentum weakens further, extended corrections could follow.
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