Short-Term Holders Hit Losses as Bitcoin Struggles Near Key Technical Levels

Bitcoin’s recent price action reveals mounting pressure from short-term holders, with the STH SOPR metric dipping below the 1.0 threshold—a critical signal of capitulation selling. The latest market data indicates BTC is trading around $93,280, down approximately 5.13% over the past year, suggesting prolonged consolidation rather than bullish momentum.

Chain Data Reveals Deteriorating Market Psychology

On-chain metrics paint a concerning picture for near-term sentiment. The 7-day STH SOPR averaging near 0.99 demonstrates that short-term holders are increasingly liquidating positions at losses. Profit and loss block analysis from market surveillance tools shows that widespread loss-taking activity is concentrated across recent holders, indicating emotional decision-making rather than strategic accumulation.

Technical Structure Under Pressure

Bitcoin’s weekly timeframe presents structural challenges. The cryptocurrency remains unable to establish support above the 200-week moving average, a long-term reference point for valuation health. Meanwhile, the 50-week moving average continues to slope downward, confirming the asset is in a downtrend adjustment phase.

Price Correction Deepens

From its all-time highs, Bitcoin has depreciated roughly 30%, entering what many analysts classify as a correction territory. With price action hovering near the $89,900-$90,000 zone, the asset faces significant resistance that has repeatedly capped upside attempts. Current market sentiment reflects 49.53% bearish positioning, reinforcing the cautious tone.

Market Outlook

The convergence of negative STH SOPR readings, failed resistance breaks, and bearish moving average alignment suggests continued pressure may persist. Short-term holders’ forced selling could extend the correction phase unless fresh demand emerges to challenge the prevailing resistance levels.