Key Notes
- On-chain data shows that short-term Bitcoin holders are selling at a loss.
- A key indicator, showing the market bottom, has surfaced.
- The market sentiment remains in the neutral zone with bearish consolidation.
Bitcoin (BTC) saw a sharp decline from its new all-time high of nearly $124,500, triggering fear, uncertainty, and doubt among investors and traders.
Short-term Holders Sell Bitcoin at a Loss
Some short-term BTC holders have been selling at a loss, similar to the January correction, according to data from CryptoQuant.
Bitcoin’s Short-Term Holders Selling at a Loss
“This loss-selling event becomes a critical barometer of market health. If absorbed quickly, it could mirror past resets that fueled strong rebounds. If not, it risks signaling a momentum breakdown.” – By @KriptoMevsimi pic.twitter.com/5IBheb7Mv8
— CryptoQuant.com (@cryptoquant_com) August 19, 2025
Will Crypto Market Rebound?
While this has weakened the momentum and investor sentiment, the CryptoQuant analyst hints at a potential “healthy reset.”
“This loss-selling event becomes a critical barometer of market health. If absorbed quickly, it could mirror past resets that fueled strong rebounds. If not, it risks signaling a momentum breakdown,” CryptoQuant analyst known as Kerem wrote.
Multiple bearish catalysts — outflows from crypto-based exchange-traded funds, US inflation, and macroeconomic situation — have been pressuring the digital asset space.
Bitcoin is currently trading below $115,000, with a market value of $2.28 trillion. However, the leading cryptocurrency saw a 10% surge in its daily trading volume, reaching $65 billion.
The global crypto market trading volume also increased by 8% to $175 billion.
This could hint at renewed interest from investors.
Another CryptoQuant analysis suggests that the exchange whale ratio has increased again. This indicates that whales are preparing for a significant market shift.
Historically, the cryptocurrency market has recorded significant spikes after short-term bearish consolidations when whale activity on exchanges increased.
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Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.
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Source: https://www.coinspeaker.com/market-bottom-signal-emerges-amid-short-term-panic-sell-off/