Analysts Attribute Bitcoin’s Decline to Panic Among New Investors

Bitcoin's decline was due to panic selling by short-term holders, not long-term investors.

The decline in the price of the leading cryptocurrency from its peak of $126,000 was triggered by the capitulation of short-term holders (STH), rather than the distribution of coins by long-term investors (LTH). This conclusion was reached by analysts at XWIN Research.

Read more ⤵️https://t.co/Mn31o4CpRQ

— CryptoQuant.com (@cryptoquant_com) November 17, 2025

Experts determined that the sharpest declines were caused by panic selling from STH, many of whom were realizing losses. During periods of downturns, the main volume of sales came from coins less than three months old. The behavior of short-term holders, especially those using leverage, had the most significant and rapid impact on the price.

LTH also sold assets since September, realizing profits. However, according to analysts, their activity aligns with behavior typical of the middle of a bull cycle. It was not an aggressive “dump” of coins usually seen at market peaks.

Despite the decline in prices, new funds continued to flow into the sector. However, the inflow was insufficient to offset the pressure from sellers.

Analysts concluded that the sharp drop was a correction within a bull market, not a trend reversal. The key driving force was panic selling and position liquidations by short-term holders.

Bitcoin at $100,000

Analyst Michaël van de Poppe predicted that the price of digital gold would rise to $100,000 within the current week.

Ideally, I want to see a fast move back up on $BTC is what I’d prefer to see.

We swept the low over the weekend, which means that I’d want to see a higher low being created here.

If that happens, then there’s trillions and trillions of short liquidity ready to be taken out.… pic.twitter.com/3TJsdtouZZ

— Michaël van de Poppe (@CryptoMichNL) November 17, 2025

In his view, on November 15-16, the quotes tested the lower bounds. Now he anticipates the formation of a higher support level, which will serve as a foundation for growth.

If this scenario unfolds, there will be an opportunity to liquidate short positions with “trillions of dollars” in liquidity.

“It will be magnificent,” he stated.

The analyst identified the retention of the $94,000 level as a key condition for testing $100,000.

At the time of writing, the price of the leading cryptocurrency is 24% below its ATH.

“Newcomers” Sold at a Loss of 148,000 BTC

On November 14, short-term bitcoin holders sold 148,241 BTC “at a loss.” The sell-off coincided with the asset’s price falling below the psychological threshold of $100,000, noted analyst Crazzyblockk.

New Money Bleeds: 148K BTC Dumped at a Loss Under $100K

“While it signifies intense short-term pain, this transfer of coins from panicked sellers to steadfast buyers at a discounted price can solidify a stronger long-term base.” – By @Crazzyblockk pic.twitter.com/bdQah68vXN

— CryptoQuant.com (@cryptoquant_com) November 17, 2025

According to his data, investors conducted transactions at a price of around $96,853. The average purchase price of the coins ranged from $102,000 to $107,000.

The breach of the $100,000 support level and the price drop below the entry point triggered a wave of fear. Investors chose to realize losses rather than wait for further declines.

The analyst described this as a “classic capitulation” of participants who bought the asset at its peak. In his view, such a transfer of coins from panicked sellers to confident buyers can strengthen the long-term support base.

Crazzyblockk believes this is a “brutal but necessary reset” that could precede market stabilization.

On November 17, the price of the leading cryptocurrency fell to a six-month low of $93,000, before recovering to around $95,000.