Bitcoin’s recovery momentum has stalled as short-term holders (STHs) continue to capitulate following last week’s violent liquidation cascade. With prices hovering near $112,000, on-chain data reveals mounting selling pressure from recent buyers, signaling fading confidence in the near term. Analysts warn that while long-term fundamentals remain intact, short-term market stress has intensified, and a deeper correction could still be on the table.
SOPR Indicator Signals Loss Realization
According to analyst Axel Adler Jr, Bitcoin’s Short-Term Holder SOPR has dropped below 1.00, a threshold that highlights traders selling their coins at a loss. “The current reading indicates loss realization and weakness in short-term demand,” Adler explained, noting that these conditions often accompany phases of market exhaustion.
The indicator’s move into what Adler calls the “High Stress Zone” suggests that many investors who bought Bitcoin during the recent rally are now offloading positions amid mounting uncertainty. Historically, SOPR dips below one have marked temporary bottoms, but only when selling pressure begins to fade.
Panic Selling Intensifies After Latest Crash
Analyst Darkfost added that short-term holders remain in distress, citing a sharp rise in Bitcoin transfers to exchanges. “Yesterday, over 56,000 BTC held at a loss by STHs were sent to exchanges, even more than during the actual liquidation episode,” he reported.
The data points to panic-driven exits, with many traders attempting to break even after the price rebound stalled. “It’s the third time in just a few days we’ve seen such panic-driven movements,” Darkfost noted, warning that this behavior could create resistance in the $110,000–$115,000 range.
Bitcoin Holds $112K But Outlook Remains Fragile
According to data from CoinMarketCap, Bitcoin trades around $112,590, down 7% over the past week, with a total market cap of $2.24 trillion. Trading volume, however, surged 14% in the last 24 hours to $86.6 billion, suggesting heightened market activity despite price weakness.
Analysts say the recent liquidation wave has left the market fragile. The clustering of realized losses among short-term holders could limit upside potential unless new capital enters to absorb selling. For now, Bitcoin remains locked between $110,000 and $112,000, a critical support band that could define whether the next major move is a rebound or a deeper correction.