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Analysis: The Bitcoin market is experiencing a healthy pullback, with new entrants panic selling.
BlockBeats News, August 26th, a CryptoQuant analyst wrote that a typical market cleansing is unfolding. On-chain data shows that the latest Bitcoin market entrants are cutting losses and exiting, while more experienced holders are accumulating these sell-off chips. This is not a signal of systemic weakness but a constructive adjustment that helps clear speculative leverage, thereby strengthening the market's foundation.
The pain point is almost entirely concentrated on the most recent entrants. Investors holding for less than a month are currently experiencing an average unrealized loss of -3.5%. Their reaction is very direct: selling. We have seen a significant decrease in the hodling supply of this group in recent weeks. This is a textbook example of "panic selling."
In stark contrast, a broader group of short-term holders (STH) remains steady and profitable, with an overall gain of +4.5%. This indicates that while the shortest-term newbies are forced to exit, holders of 1-6 months not only hold their positions but are also in a relatively comfortable profit state. The decrease in total STH supply is not a sign of panic spreading but a direct result of "speculative tourist" capitulation.
This is a structural positive development. The market is cleansing its weakest holders, transferring Bitcoin to those with lower costs and stronger convictions. With the release of panic selling pressure, the selling pressure above the market is significantly reduced, making the price structure more stable. Although this adjustment is very painful for recent high buyers, it is precisely such a clearing event that establishes a solid support base for the next major uptrend.
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