Bitcoin Short-Term Holders Face Steep Losses Amid Increased Selling Pressure
Bitcoin has experienced a sharp decline recently, with short-term holders recording significant losses nearing 13 percent. The selling pressure has been concentrated primarily on recent buyers, intensifying the market downturn.
According to data from CryptoQuant, new investor cohorts have been driving panic-induced sell-offs following Bitcoin’s steep drop to the $98,401 level. Investors who entered the market within the past week faced an average loss of 3.46 percent, while those who bought within the last month saw losses of 7.71 percent. Short-term holders holding Bitcoin for up to six months were hit hardest, absorbing losses as high as 12.79 percent.
This pattern reflects rising pressure on traders sensitive to short-term price fluctuations. CryptoQuant describes this phase as a “market flush,” where highly reactive traders exit the market amid rapid downside moves. Historically, realized losses of this magnitude tend to signal peak stress among short-term holders and often coincide with local market bottoms. During such periods, long-term holders typically absorb the supply offloaded by short-term traders.
Technical Signals Highlight Bitcoin’s Mid-November Movement
Market analyst ColinTCrypto has identified a notable technical development on Bitcoin’s chart. He pointed out the emergence of a “death cross” as the price touched the lower boundary of a megaphone pattern. This boundary aligns with earlier forecasts predicting a mid-November price target within that range.
The death cross—a technical indicator where the short-term moving average crosses below the long-term moving average—has historically preceded short-term rebounds in previous cycles. ColinTCrypto flagged this as a potential setup for an upward move in the near term. He also referenced the Federal Reserve’s plan to end quantitative tightening on December 1 as a possible influence on market behavior, emphasizing the significance of near-term factors without committing to long-term predictions.
Market Data Reflects Active Trading During Correction
Supporting these observations, CoinGecko reported Bitcoin trading at $95,680 as of the most recent data, following the earlier dip to $98,401. The cryptocurrency experienced a 24-hour decline of 1.18 percent and a seven-day drop of 6.47 percent. Meanwhile, trading volume increased, climbing above $95.9 billion, indicating heightened market activity amid the correction phase.
Overall, Bitcoin’s recent price action and on-chain data suggest intensified selling pressure from short-term holders, marking a notable phase of market stress. However, historical trends and technical signals may hint at an approaching stabilization or rebound in the near future.
https://blockonomi.com/bitcoin-panic-selling-deepens-as-key-indicator-flashes-local-bottom-signs-price-rebound-imminent/