Short-Term Bitcoin Holders Exit at Loss—Time to Buy Their Panic?

• Bitcoin is trading around $84,660, up by 0.68%, indicating a pause in momentum at a key resistance level.
• Short-term holders are selling at a loss (STH-SOPR < 1.0), with Bitcoin possibly undervalued below $92,000.
• CryptoQuant analyst advises steady Bitcoin accumulation while managing risks through short positions in derivatives.

Bitcoin continues to hover near the $85,000 mark, signaling a pause in upward momentum after briefly climbing above it earlier this week. It is currently trading at $84,660, reflecting a 0.68% gain over the past 24 hours.

Following a recovery from previous corrections, the cryptocurrency has struggled to surpass its current resistance zone. The inability to break higher shows a weakening of bullish pressure and growing hesitation among market participants.

While investors with a long-term strategy appear to be holding firm, those with shorter timeframes are showing signs of stress. Their actions may provide insight into future market direction and help identify possible points of entry or exit for others.

Crypto Bitcoin STH-SOPR Hints at Capitulation Phase

CryptoQuant contributor CryptoMe provided analysis of recent market behavior of short-term holders (STHs) using the Short-Term Holder Spent Output Profit Ratio (STH-SOPR). The indicator tracks profitability by measuring whether STHs sell assets at a profit or loss. When STH-SOPR remains above 1.0, holders exit with gains. A level below 1.0 reflects losses on spent outputs.

Currently, the 14-day moving average of STH-SOPR remains under 1.0, indicating most short-term traders are selling at a loss. This pattern commonly reflects a capitulation phase, driven by market pressure that pushes weaker participants to liquidate holdings.

Despite a potentially bearish short-term outlook, similar STH-SOPR trends have historically surfaced during previous bull markets. As a result, such movements have often signaled advantageous entry points for long-term participants willing to capitalize on broader market corrections.

If you believe the bull run will continue in the coming months, this capitulation could be a buying opportunity,” CryptoMe explained.

Crypto $92K Realized Price Hints at Potential Undervaluation

Another indicator shared in the analysis is the STH Realized Price, which currently sits around $92,000. This metric represents the average price paid for coins by short-term holders. When the market price falls below this level, it may suggest that the asset is undervalued based on recent purchases.

According to CryptoMe’s analysis, previous bullish cycles saw long-term accumulation phases emerge when the spot price dropped under this level. Red zones on his chart mark such periods, historically associated with investor positioning for future gains.

Amid global economic instability, CryptoMe recommends a dual strategy. He favors steady Bitcoin accumulation through direct purchases while also managing downside risk via short positions in derivatives.

This balanced method seeks to navigate potential further losses without full exposure. Should economic conditions and liquidity improve, the market could resume an upward trajectory. Until then, data supports a cautious and disciplined approach for participants awaiting stronger signals.

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