The Bitcoin (BTC) market continues to be under high pressure for short-term holders (STH). This group is in its deepest loss position in 2025, with recent buyers trading below their average entry price.
According to financial analysts at CryptoQuant, known as IT Tech, “Bitcoin buyers are underwater these days.” This means that Any rise will be met with immediate selling.
In his assessment, “this overload will maintain pressure on the market in the short term, as weak hands are likely to continue selling on every rebound.”
The graph below shows this behavior. STH’s profit/loss spread remains mostly in negative territory, with the red bar widening since late October. The price of Bitcoin continues to be below the group’s “realized price” at face value (slightly more than $100,000 per Bitcoin), with the majority of recent buyers still have unrealized losses. Therefore, every time you approach that level, a liquidation will occur and recovery will be slow.
Still, IT Tech emphasizes that this situation does not necessarily mean that adjustments are in the early stages. “Structurally, these large pockets of losses tend to emerge closer to the later stages of a correction than to the earlier stages,” he explained.
Hence the question that many traders have at this point in the cycle. “Is this an area to reduce risk or to be patient and start planning your entry?”
Bitcoin is undergoing restructuring and is subject to forced sales
This move is in line with what was previously reported by Glassnode and collected by CriptoNoticias, which details that the Bitcoin market is going through a “confidence rebuilding phase.”
In it, leverage decreases, speculative activity recedes, and participants adjust their expectations after a period of over-indebtedness or over-indebtedness. At these stages, Selling pressure remains highespecially among those in the high price range.
We also document that markets are already undergoing cycles of forced selling due to the liquidation of leveraged positions and the expiration of derivative products.
In this environment, STH losses reflect the gradual exit of uncertain operators. On the other hand, the offer goes to those with greater conviction. This is consistent with what we observed in the graph where short-term losses are concentrated and continue throughout the last month.
Therefore, STH’s persistence in the ‘true pain zone’ suggests that selling pressure will continue to drive price trends in the short term.
However, market history and technology analysis shows that such stretches tend to approach an advanced stage of correction, where the market clears out the excess before resuming a more constructive trend.
The immediate question for investors is whether further attention is needed on this point, or, on the contrary, whether the environment is starting to set in place for future entries to be planned with a medium-term vision.
