Bitcoin extended its decline on Tuesday, slipping more than 4% in 24 hours to an intraday low near $62,700 before stabilizing around $63,100. The move reflects intensifying pressure across the market as short-term holders accelerate loss-taking activity.
On chain data shows the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) has fallen to 0.95, a level that signals coins are being sold at a loss. A reading below 1 typically indicates capitulation among newer market participants. Analysts note that the recent wave of selling appears concentrated among short-term holders reacting to macroeconomic uncertainty rather than long term investors distributing positions.
Further confirmation comes from realized loss metrics. The seven day average of short term holder net realized losses recently surged above $1.2 billion per day before cooling toward $500 million, suggesting the most aggressive selling phase may be easing but not fully resolved. Meanwhile, the 90-day realized profit-to-loss ratio has dropped below 1, marking a transition into what analysts describe as an excess loss-realization regime.
Glassnode said on X;
Weekly RSI Signals Deep Oversold Conditions
Bitcoin’s weekly Relative Strength Index has fallen to approximately 25.6, one of the lowest readings on record. Historically, similar RSI levels have coincided with late-stage capitulation phases, often preceding longer-term recoveries despite short term volatility.
If historical patterns repeat, the current oversold structure could indicate that Bitcoin is entering a base-building phase rather than the beginning of a prolonged downtrend.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.