HomeCoinsBitcoinShort-term Bitcoin holders are panicking again, and analysts say we're at a...

Short-term Bitcoin holders are panicking again, and analysts say we’re at a significant crossroads

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Short-term investors are again seeing losses, and this pressure is reflected in the information. STH SOPR fell to around 0.94 while Bitcoin traded around $85,550 to $85,680. This number signifies that many recent buyers have sold for lower than they paid. Markets often react to these kinds of sales with strong moves. Sometimes prices get better. Sometimes the slide continues.

History shows deep SOPR troughs during major corrections

Based on past movements, the market exhibits a pattern. Reportedly, SOPR lows were around 0.87 during key correction periods in early 2019 and around 0.88-0.90 in 2022-2023.

Since 2023, short-term holders have hit stress points 3 times: August-September 2024 (STH SOPR around 0.98), April 2025 (0.94), and now November 2025 (0.94).

This latest decline reportedly reflects previous waves of stress. Traders recall that capitulation by short-term holders often preceded months of consolidation after which renewed strength.

BTC – Short-term holders have given up, but…

“In the short term, a recovery may be very likely, but when we fall again and lose $80,000, the likelihood of a much tougher phase ahead is significantly higher.” – By @DanCoinInvestor pic.twitter.com/VZ1M2MnvaO

– CryptoQuant.com (@cryptoquant_com) November 24, 2025

Important on-chain and market signals point in each directions

CryptoQuant's broader metrics are mixed and a few are concerning. The Bull Score Index is at 20. Bitcoin has fallen below its 365-day moving average. Reports warn that a break below $80,000 would increase the likelihood of an extended, harsher downturn.

At the identical time, the most recent decline puts BTC about 32% away from its all-time high set in early October, after falling about 10% last week. Analysts are actually watching these levels closely for clues.

BTCUSD is now trading at $86,271. Chart: TradingView

Focus on liquidity and liquidations

Liquidation charts show strong short exposure between $87,000 and $95,000. According to data cited by Ash Crypto and Coinglass, a 15% price increase could end in as much as $8.5 billion briefly liquidations.

This creates the potential of a fast upward squeeze if buying outweighs short bets. Analysts have highlighted a downward resistance line that Bitcoin must overcome.

A successful breakout could trigger a 10-12% increase towards around $96,500, analysts say. In other words, a single strong move could convert pressure into momentum.

🚨Over $8.5 billion value of short sales can be liquidated as Bitcoin rises 15%. pic.twitter.com/F9FcqhVyTl

— Ash Crypto (@AshCrypto) November 23, 2025

Two ways the subsequent phase could play out

Market participants are weighing up two basic scenarios. First, this sale marks the ultimate leg of a mid-cycle correction, followed by accumulation and recovery.

The other view is that these losses represent the beginning of a deeper market shift that may take longer to resolve. Some analysts reportedly consider a significant 70%-style drop from all-time highs is unlikely, but the danger can’t be dismissed if support fails.

A critical crossroads for Bitcoin

Currently, Bitcoin is at a transparent turning point. Short-term coins were once more sold at a loss, liquidity clusters are piling up near the $87,000-$95,000 range, and key indicators are signaling stress.

Traders and institutions will likely resolve Bitcoin's next big move in the approaching days and weeks, either by forcing an upward squeeze through liquidations or lowering prices if demand stays weak.

Featured image from Unsplash, chart from TradingView

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