Short-term holders are capitulating, signaling a late-stage Bitcoin correction.
Date: 2025-11-19 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
According to CryptoQuant analysts, the Bitcoin market has entered a period of pronounced weakness among short-term holders. Experts note that the dynamics of key indicators of this investor group's behavior point to widespread loss-taking and heightened emotionality among market participants.
The key indicator of the current situation is the STH-SOPR indicator, which has not risen above 1 for several weeks and is currently at 0.97. This means that most recently acquired coins are being sold at a price below cost. This behavior pattern has historically corresponded to phases of panic, when holders prefer to close positions even at losses.
Another indicator, STH-MVRV, shows a similar picture. It has fallen significantly below 1, indicating that virtually all investors who bought Bitcoin in recent weeks are now in the red. CryptoQuant emphasizes that the combination of low SOPR and MVRV values traditionally reflects moments when the market is experiencing pressure from those seeking to get rid of the cryptocurrency as quickly as possible.
An additional argument in favor of increasing capitulation was the recent surge in activity on centralized exchanges: more than 65,000 BTC were moved to trading platforms with clear loss-taking. According to experts, such movements are typically characteristic of capitulation by participants who no longer expect a quick market reversal and prefer to exit the asset at any cost.
However, CryptoQuant notes that such periods often precede stabilization. After weak hands exit the market, selling pressure gradually eases, paving the way for a possible recovery. Analysts emphasize that this doesn't guarantee a quick rally, but historical examples show that deep declines in short-term indicators have most often corresponded to the late stages of a correction, rather than its onset.
Experts also note that they previously predicted a further decline in Bitcoin to around $87,500. They believe this scenario remains relevant, despite signs of capitulation exhaustion. Overall market dynamics will depend on how quickly selling pressure subsides and whether demand emerges from buyers willing to take advantage of the weakening price.
Thus, the current situation is shaping a typical market behavior pattern during periods of intense emotional stress: mass takeovers, sharp surges in exchange activity, and declining confidence among short-term players create conditions under which the market could approach the end of the correction phase.
