Bitcoin Price News: Top Buyers Capitulate and Sell BTC at a Loss – Buy Signal?

Published: December 5, 2025

Author: Alejandro Arrieche

Key Points

• Short-term holders (STHs) have recently capitulated, resulting in a loss of approximately $6 billion.
• Historically, peaks in realized losses from STHs have indicated market bottoms.
• The 4-hour chart for Bitcoin (BTC) shows an emerging uptrend after bouncing off $82,000.

Market Overview

Bitcoin has experienced a significant decline, losing nearly 30% of its value since reaching its latest all-time high. This downturn was influenced by a flash crash on October 10 and hawkish remarks from the U.S. Federal Reserve. The Fear and Greed Index has also hit a record low, reflecting a drastic shift in market sentiment from bullish to bearish.

Capitulation of Short-Term Holders

Data from Glassnode indicates that short-term holders who purchased Bitcoin at its peak have suffered substantial losses, totaling around $6 billion. This capitulation is seen as a potential indicator of a market bottom, as similar patterns in the past have preceded price recoveries. For instance, in August 2024, buyers who purchased BTC at approximately $70,000 sold at around $50,000, only for the price to rebound to a new high of $100,000 shortly thereafter.

Future Market Expectations

The upcoming Federal Open Market Committee (FOMC) meeting is anticipated to be a critical event for the market. Analysts expect a 25 basis points rate cut, with further cuts likely in early 2026. Any deviation from this expectation could exacerbate the current market correction.

Technical Analysis

Bitcoin has recently rebounded after finding support at $82,000 and $85,000. However, it faces selling pressure as it approaches the $100,000 mark. The 4-hour chart indicates a bullish trend, but the Relative Strength Index (RSI) has turned bearish, suggesting that negative momentum is increasing. If the current support holds, Bitcoin could potentially bounce back to the $90,000 to $95,000 range in the coming days.

Conclusion

While the market is currently under pressure, the capitulation of short-term holders may signal a potential buying opportunity for long-term investors. The upcoming FOMC meeting will be crucial in determining the near-term direction of Bitcoin's price.