Bitcoin is trading at critical price levels as the market enters one of its most tense and uncertain stages of the year. The crypto market is showing clear signs of stress, and new data from CryptoQuant confirms that Bitcoin is now moving into one of the most severe short-term capitulation phases of this cycle. According to the latest on-chain metrics, short-term holders (STHs) are realizing losses at a scale typically seen only near major market turning points. Related Reading: XRP Supply In Profit Falls to 58.5% – Lowest Since 2024 Despite Higher Price The key indicator driving this analysis is STH-SOPR, which has plunged to deeply depressed readings around 0.97. This means STHs are selling coins at a clear loss, often driven by fear rather than strategy. Even more importantly, this metric has spent several consecutive weeks below the critical 1.0 threshold, forming what analysts refer to as a structural “capitulation band.” Historically, whenever STH-SOPR remained under 1.0 for extended periods, it signaled heavy emotional selling—typically from the most reactive and least informed market participants. These episodes have repeatedly aligned with late-stage corrections, market reversals, and shifts in long-term holder dominance. With Bitcoin now sitting at a crucial technical and psychological zone, the next phase could determine whether this becomes a deeper bear trend or a major reset before recovery. Short-Term Holders Under Extreme Stress as Capitulation Deepens According to XWIN Research on CryptoQuant, the current selloff is being amplified by the behavior of short-term holders, with the STH-MVRV ratio now sitting far below 1.0. This indicates that nearly all recent buyers are holding Bitcoin at a loss, placing short-term profitability in one of the weakest conditions in the entire dataset. Historically, these deep unrealized-loss phases are extremely rare and tend to compress selling pressure quickly, as weak hands eventually run out of coins to sell. This pattern is clearly visible in real market flows. A striking 65,200 BTC were recently sent to exchanges at a loss, showing that fear is not an abstract sentiment but is materializing in real, loss-driven capitulation. This kind of behavior aligns with classical capitulation structures: unrealized losses surge, panic selling intensifies, and eventually selling pressure becomes unsustainable. Once that happens, stronger hands begin absorbing supply quietly in the background. While this setup doesn’t guarantee an immediate rebound, the broader structure is shifting toward conditions that have historically preceded cyclical recoveries. STH losses remain at extreme levels, STH-SOPR is still below 1.0, and the pressure fueling exchange inflows is rooted in panic rather than fundamentals. Volatility is likely to persist, but the ongoing cleansing of weak hands is a process often seen near the end of major corrections — not at the start. Related Reading: Galaxy Digital Dumps 2,800 BTC as Bitcoin Crashes Below $90K Testing Weekly Support as Momentum Weakens Bitcoin’s weekly chart shows the market approaching a critical turning point as price trades just above $91,000 following a sharp multi-week decline. The recent breakdown from the $110,000–$105,000 range has confirmed a loss of bullish momentum, with sellers gaining control and pushing BTC toward its next major weekly support cluster near the 50-week moving average around $88,000–$90,000. This zone has historically acted as a key pivot level, often signaling whether a corrective phase deepens or stabilizes. Volume adds important context. The past several weekly candles show rising sell-side activity, reflecting panic-driven exits rather than orderly distribution. However, this surge in volume also indicates that the market may be approaching a capitulation threshold, where forced selling begins to exhaust itself — a setup often seen before stronger hands step in. Related Reading: Ethereum Approaches Historical Accumulation Level – Just 8% Away From LTH Cost Basis Structurally, Bitcoin is still trading above the 100-week and 200-week moving averages, both of which continue to trend upward. This suggests the aggressive downside move has not yet broken the broader macrotrend. But the loss of mid-term support levels and the sustained downward pressure highlight a market struggling to find confidence. Featured image from ChatGPT, chart from TradingView.com
Data shows the Bitcoin Fear & Greed Index has slipped back into the fear territory following the crash in the cryptocurrency’s price. Bitcoin Fear & Greed Index Suggests Investors Now Fearful The “Fear & Greed Index” refers to an indicator created by Alternative that tells us about the average sentiment present among traders in the Bitcoin and wider cryptocurrency markets. Related Reading: Bitcoin Falls Below $113,000, But This Indicator Says It’s Time To Buy The index uses the data of the following five factors to determine the investor mentality: volatility, trading volume, market cap dominance, social media sentiment, and Google Trends. It then represents the calculated sentiment as a score lying between zero and hundred. All values above 53 correspond to a net sentiment of greed, while those under 47 imply the presence of fear in the market. A value between these two thresholds naturally corresponds to a neutral mentality. Now, here is how the sentiment among Bitcoin traders is currently like, according to the Fear & Greed Index: As is visible above, the index has a value of 45 at the moment, indicating that the investors are fearful, although only to a slight degree. The fear value is a new shift for the market, with this being the first time since September 7th that the metric has dipped into the zone. The worsening of sentiment is a result of the bearish price action that Bitcoin and other digital assets have faced recently, with prices across the sector observing a particularly sharp drop during the last 24 hours. The turn to fear, however, may actually not be a bad sign for the market, if the past is anything to go by. Historically, BTC and company have tended to move in the direction that goes contrary to the expectations of the crowd. The probability of such an opposite move occurring generally only goes up the more sure the traders become of a direction. On the Fear & Greed Index, there are two regions where this likelihood becomes the strongest: extreme fear (below 25) and extreme greed (above 75). The former is where major bottoms have occurred in the past, while the latter has facilitated top formations. While the investor sentiment is currently far from turning into extreme fear, the fact that investors are no longer greedy could still be a positive for the bull run’s hopes. It only remains to be seen, though, how things would play out for Bitcoin and other cryptocurrencies. Related Reading: Dogecoin Ready To Bark Again? Analyst Sees Path To $0.45 In some other news, the latest market crash induced a large amount of liquidations in the derivatives market, but speculators haven’t become discouraged by the squeeze, as CryptoQuant community analyst Maartunn has explained in an X post. As displayed in the above chart, the Open Interest plummeted alongside the Bitcoin price plunge, but it has already made some recovery with a jump of $1 billion (2.63%). BTC Price Bitcoin has come down to the $12,600 level following its latest plummet. Featured image from Dall-E, Alternative.me, charts from TradingView.com
Data shows the Bitcoin Fear & Greed Index has seen a bearish flip following the plunge in the cryptocurrency’s price to $113,000. Bitcoin Has Continued Its Recent Drawdown Since setting a new all-time high (ATH) above $124,000 one week ago, Bitcoin has been facing a downtrend. The bearish momentum has only furthered during the past day, with BTC hitting a low under $113,000. Related Reading: Dogecoin Coils Up: Triangle Break Could Spark 40% Move, Analyst Says Below is a chart that shows how the coin’s recent performance has looked. From the graph, it’s visible that BTC has seen a bit of recovery after forming a low around $112,400, but at the current price of $113,800, the asset is still notably below the levels from the last few days. As is usually the case, the bearish price action has worsened the sentiment among investors. Fear & Greed Index Is Now Suggesting A Fearful Market The “Fear & Greed Index” refers to an indicator created by Alternative that tells us about the average sentiment present among traders in the Bitcoin and wider cryptocurrency markets. The index determines the investor mentality using the data of five factors: trading volume, market cap dominance, volatility, social media sentiment, and Google Trends. It then represents it as a score lying between zero and hundred. When the metric has a value greater than 53, it means the investors as a whole share a sentiment of greed. On the other hand, it being under 47 implies the presence of fear in the market. A level lying between the two thresholds naturally corresponds to a net neutral mentality. Now, here is how the sentiment in the sector currently looks according to the Fear & Greed Index: As displayed above, the index is sitting at a value of 44, indicating that Bitcoin investors are fearful. This is a shift from how the mood has been like in the market for the past couple of months. The Fear & Greed Index was previously in the greed zone since June, but the latest decline in BTC’s price has meant the investors have finally let go of bullish sentiment. If history is anything to go by, this flip in trader mentality could actually turn out to be a positive sign for Bitcoin and other cryptocurrencies. The market often tends to move in the direction that goes contrary to the expectations of the majority, with an excess of FUD facilitating bottoms and overhype resulting in tops. This effect was seen in action during the aforementioned June sentiment low, which coincided with BTC’s bottom under $99,000. The turnaround in the asset only required an index value of 42, but generally, a more powerful fear sentiment is needed before a bottom can occur. Related Reading: Bitcoin Bullish Signal: Sharks & Whales Are Buying The Dip It now remains to be seen whether the latest dip into fear is enough to induce a reversal in Bitcoin and other coins, or if sentiment will deteriorate further. Featured image from Dall-E, Alternative.me, chart from TradingView.com
Data shows the sentiment among Bitcoin traders has plunged into the fear territory following the crash in the cryptocurrency’s price. Bitcoin Fear & Greed Index Has Plummeted During The Past Day The “Fear & Greed Index” refers to an indicator devised by Alternative that tells us about the average sentiment that’s currently present in the Bitcoin and wider cryptocurrency markets. This metric makes use of a numerical scale that runs from zero to hundred for representing the market mentality. All values above the 53 mark correlate to the investors sharing a sentiment of greed, while those under 47 suggest the presence of fear in the sector. The region in-between these cutoffs corresponds to a net neutral sentiment. Related Reading: Stablecoins See Positive Momentum: Will This Lead To New Bitcoin All-Time High? Besides these three main regions, there are also two special zones known as the extreme fear and extreme greed. The former occurs below 25 and the latter above 75. Now, here is how the latest market sentiment has looked according to the Bitcoin Fear & Greed Index: As is visible above, the indicator has a value of 44, which suggests the traders in the sector are being fearful at the moment. This is a drastic change from how the market has been recently, as the below chart displays. On the 31st of last month, the Bitcoin Fear & Greed Index had a value of 76, meaning that the market sentiment was inside the extreme greed territory. Just three days later, the trader’s opinion has completely flipped. The rapid deterioration in sentiment is a result of the bearish price action that the asset has witnessed this month, which has culminated in a crash during the past day. If history is to go by, though, the skepticism that has developed among the investors may actually be a positive sign for BTC’s price. Bitcoin and other digital assets often tend to move in a direction that’s opposite to what the crowd is expecting. The probability of such a contrary move taking place only rises the stronger the investors’ belief becomes. Related Reading: Bitcoin HODLer Selloff Extends To 1.1 Million BTC As Profit-Taking Continues Extreme greed and extreme fear are where this likelihood is the strongest, so major tops and bottoms have historically formed when the Fear & Greed Index has been in these regions. The top last month, for instance, also occurred alongside extreme greed. Traders who follow an investing philosophy called contrarian trading exploit this fact to time their moves. Warren Buffet‘s famous quote sums up the idea: “Be fearful when others are greedy, and greedy when others are fearful.” While the market sentiment hasn’t quite worsened into extreme fear yet, the fact that the metric is at its lowest value since October could still be a sign that a contrarian trader may be looking for. It now remains to be seen whether the current level of fear would be enough for Bitcoin to bottom out, or if a further drop will happen first. BTC Price At the time of writing, Bitcoin is floating around $95,200, down around 4% in the last 24 hours. Featured image from Dall-E, Alternative.me, chart from TradingView.com
Bitcoin has faced its first major correction since early November, dropping 13% from its all-time high of $108,364. This sudden pullback has sent shockwaves across the crypto market, shifting sentiment from extreme bullishness to uncertainty and even fear. The sell-off has been particularly brutal for altcoins, many of which are bleeding hard as Bitcoin struggles to regain momentum. Related Reading: On-Chain Metrics Reveal Cardano Whales Are ‘Buying The Dip’ – Details Key metrics from CryptoQuant highlight the gravity of the situation, with realized losses totaling $28.9 million—an alarming 3.2 times higher than the weekly average. This spike in realized losses suggests that some investors exit positions as the market recalibrates after weeks of aggressive upward movement. The big question now is whether this is simply a healthy correction in an otherwise bullish trend or the start of a larger downtrend. Traders are closely watching Bitcoin’s ability to hold critical support levels and the behavior of altcoins, which often amplify Bitcoin’s price movements. For now, the market remains at a crossroads, with the coming days likely to reveal whether Bitcoin can recover and resume its uptrend—or if this correction signals a more prolonged period of weakness. Bitcoin Facing Selling Pressure Bitcoin is under significant selling pressure after two days of aggressive bearish activity, marking a pivotal moment for the market. The sudden sentiment shift has caused many analysts and investors to turn cautious, with some flipping bearish as Bitcoin’s recent trend begins to lose momentum. This correction has left the market questioning whether the current price movement is a natural pause or a precursor to deeper losses. Top analyst Axel Adler recently shared insights on X, supported by compelling on-chain data, highlighting that realized losses have surged to $28.9 million. This figure is 3.2 times higher than the weekly average, indicating heightened selling activity. Adler’s analysis underscores that while the sell-off might seem alarming, it’s consistent with a healthy market correction, especially following Bitcoin’s remarkable rally to $108,300. Adler notes that the current dip should not trigger panic but instead serve as a moment of patience for long-term holders. He emphasized that now is a time to HODL unless additional bearish signals emerge to suggest a more prolonged downtrend. Corrections like this often provide the market with the necessary fuel for the next leg up, as weaker hands exit and strong hands position themselves strategically. Related Reading: Solana Holds Monthly Support As Network Activity Grows – Time For A Breakout? Price action remains critical, with investors watching closely to determine whether this correction solidifies a strong foundation for future growth or signals further downside. BTC Holding Bullish Structure (For Now) Bitcoin is trading at $94,400 following three consecutive days of aggressive selling pressure. Despite the apparent bearish sentiment gripping the market, BTC has managed to maintain its footing above the key support level of $92,000. This support is crucial as it clearly defines the ongoing uptrend. Holding above this level suggests resilience and sets the stage for a potential strong bounce if buyers regain control in the coming sessions. While the recent price action reflects uncertainty, the decline has not been as severe as the market sentiment indicates. Negative emotions have driven many traders to adopt a cautious stance, but BTC’s ability to stay above $92,000 shows underlying strength in the market structure. Related Reading: ONDO Exchange Inflows Grow – Volatility Ahead? However, sentiment remains a critical market driver. Restoring confidence will be essential for Bitcoin to reclaim higher levels and resume its bullish momentum. If sentiment does not improve and prices continue to drop, the risk of a deeper correction becomes more likely. Losing the $92,000 support could pave the way for a retest of lower levels, potentially causing additional volatility. Featured image from Dall-E, chart from TradingView
Data shows that Bitcoin traders’ sentiment has declined into ‘fear’ after the price crash the cryptocurrency has seen during the past 24 hours. Bitcoin Fear & Greed Index Is Now Suggesting A Fearful Market The “Fear & Greed Index” is an indicator created by Alternative that tells us about the average sentiment currently held by traders in the Bitcoin and wider cryptocurrency market. The index uses a scale from zero to a hundred to represent the sentiment. The score is calculated based on five factors: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends. Related Reading: These Are The Altcoins In Buy Zone, Analytics Firm Reveals All values of the indicator above 53 signify the presence of greed among the investors, while those below 47 imply fear in the market. The region between these two cutoffs naturally corresponds to a neutral mentality. Now, here is what the Bitcoin Fear & Greed Index looks like currently: As is visible above, the Bitcoin Fear & Greed Index has a value of 44, suggesting that the sentiment is just inside the fear territory. This is a change from what it has been like during the last few days. The chart below shows how the indicator’s value fluctuated over the past year. The graph shows that the Bitcoin Fear & Greed Index had been in neutral territory during the first three days of this month, but today, on the fourth, the sentiment has plunged. The reason behind this worsening mentality is the crash that the cryptocurrency’s price has witnessed during the past day, which has taken its price under the $58,000 level. It’s also visible in the chart that the neutral sentiment in the first three days of July showed a sharp improvement over how June had ended. The metric had hit a low of 30 on two occasions to end the month as a culmination of the bearish momentum BTC had been facing. As the bearish winds seem to be picking back up for the asset now, the recovery in the sentiment may be lost soon. This may not entirely be, however, bad news for the coin. The Bitcoin price has historically tended to move against the crowd’s expectations. The chances of such a contrary move to take place grow the larger this expectation becomes. That is the more the Fear & Greed Index points in any direction. Major tops and bottoms have generally occurred when the asset has been inside the extreme greed and fear regions, respectively. Extreme greed is the territory where the index attains values higher than 75. Similarly, extreme fear occurs under 25. Related Reading: Why Did Bitcoin Plunge Under $58,000? On-Chain Data Says This If the indicator’s value continues to decline from here, it falls into the extreme fear it could be to watch for, as they may also lead towards a potential bottom for Bitcoin this time. BTC Price At the time of writing, Bitcoin is trading at around $57,900, down almost 6% in the past seven days. Featured image from Dall-E, Alternative.me, chart from TradingView.com