The post Deep STH Panic Shows Bitcoin Moving Into a Critical Phase appeared on BitcoinEthereumNews.com.

Short-term holders are realizing deep losses, forming a classic late-stage capitulation structure seen before major market turning points. On-chain metrics show extreme stress among recent buyers, signaling the exhaustion of weak hands during a late-cycle fear phase. A wave of panic from short-term holders (STH) has resurfaced, making the Bitcoin market even more gloomy. The latest data from XWIN Research Japan shows that this group of short-term holders is in a deepening capitulation phase, marked by selling at increasingly steep losses. Indicator-wise, the STH-SOPR has plunged to around 0.97, a level that typically only appears when selling pressure peaks. This figure has been below the 1.0 threshold for several weeks, seemingly forming a capitulation band that is difficult to ignore. The situation is reminiscent of times when market participants dumped assets not based on a well-thought-out strategy, but out of fear that clouded reason. Source: CryptoQuant STH Weakness Deepens Amid Mounting Exchange Losses What makes the situation less benign is the drop in the STH-MVRV below 1, meaning almost all new buyers are taking losses. On the other hand, this pattern rarely lasts long, as selling pressure usually dissipates quickly once the “weak hands” have finished unloading their positions. Source: CryptoQuant However, the situation this time is a bit more complicated. XWIN Research Japan recorded an inflow of around 65,200 BTC into exchanges at a loss, a sign that fear wasn’t just surfacing but was already being reflected in real transactions. The flow resembled a traditional capitulation phase: unrealized losses mount, panic selling surges, selling pressure reaches saturation, and then strong players begin to scoop up supply. Not only that, the on-chain momentum we previously highlighted has now dropped into the pessimistic zone. This movement typically indicates the risk of a deeper correction if there is no new buying impetus.…

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Filed under: News - @ November 19, 2025 6:25 am