Bitcoin Short-Term Holder Losses Deepen as Exchange Inflows Plunge, Potentially Easing Selling Pressure

Bitcoin short-term holders are taking larger losses, but the volume of loss-making coins moving to exchanges has fallen sharply, suggesting potential selling pressure may be easing.

CryptoQuant analyst MAC_D wrote in a Quicktake report on Nov. 10 that the seven-day moving average of Bitcoin short-term holder SOPR recently stood at about 0.99.

Short-term holder SOPR measures the average realized profit or loss when short-term investors sell Bitcoin. A reading below 1 means loss-making sales are dominating on average.

On Nov. 6, about 32,695 BTC held at a loss by short-term investors flowed into exchanges. That was about 89% of total exchange inflows from short-term holders at the time.

But on Nov. 9, when Bitcoin hit a fresh low, exchange inflows of loss-making coins from short-term holders plunged to about 9,900 BTC. Even as the price fell further, fewer underwater coins moved to exchanges, indicating additional selling pressure may be weakening.

The analyst added that in past bull markets, rising loss realization by short-term holders was followed by periods of weaker selling pressure that became accumulation opportunities.

"Even if Bitcoin falls further, a continued decline in exchange inflows from short-term holders sitting on losses could signal that selling pressure is easing," the analyst wrote, adding that the potential for a rebound bears watching.