While short-term holders are selling in panic, a key indicator suggests a local market bottom is near, with expectations of a rebound.
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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