No Capitulation, Just Consolidation: What This Bitcoin (BTC) Correction Really Signals

Bitcoin (BTC) came under renewed selling pressure on Thursday as it slid below the $105,000 ￰0￱ latest market downturn has reignited comparisons to earlier ￰1￱ on-chain data suggests the 2025 landscape is structurally stronger than in 2020 or ￰2￱ Shock, New Bitcoin Unlike past corrections, when exchange reserves surged as investors rushed to sell, CryptoQuant said that today’s balances remain near decade ￰3￱ reflected a leaner supply on trading ￰4￱ scarcity of readily available Bitcoin dampens the potential for prolonged selloffs and creates conditions for quicker stabilization. Meanwhile, long-term holders appear largely unfazed by recent ￰5￱ Long-Term Holder Spent Output Profit Ratio (LTH-SOPR) has stayed close to neutral, in sharp contrast with the deep sub-1 readings of previous capitulations that signaled mass losses and panic ￰6￱ of dumping positions, these holders are selectively realizing ￰7￱ shows Bitcoin’s pattern of ￰8￱ March 2020 crash, for one, cleared excess leverage before whales began buying ￰9￱ May 2021, as well, large wallets repeated the cycle – selling high, then buying ￰10￱ the August 2023 US debt downgrade, another quick rebound followed as investors ￰11￱ cycle demonstrated the market’s growing ability to absorb shocks and ￰12￱ present setup “does not equate to structural weakness.” Unless a surge in exchange inflows triggers broad selling pressure, the analysis stated that Bitcoin’s current retracement looks less like a capitulation and more like a ￰13￱ Still Leaving Exchanges Swissblock also observed that Bitcoin’s downturn reflects consolidation rather than ￰14￱ analytics platform said that after weeks of heavy exchange outflows driven by long-term holders’ accumulation, some selling has resumed, but with significantly milder ￰15￱ the shift, BTC continues to flow out of exchanges, even as the pace is slower, indicating that investors remain largely confident and are not rushing to liquidate holdings.

“The true impact of the weekend’s deleverage will surface as participants ￰16￱ far, on-chain behavior supports short-term bullish structural consolidation, not panic or forced selling.”