Short-Term Holders Keep Buying Bitcoin Despite Losses — Is a Rebound on the Horizon?

Jakarta, Pintu News – The price of Bitcoin (BTC) was trading around $113,600, down 1.3% on August 20. While many traders are worried that the price will continue to weaken, a group of investors are showing signs that a short-term bounce is possible.

These buyers are quietly adding to their holdings even at a loss, a pattern that has previously triggered price recoveries. Their behavior could be a signal that the worst phase of the current downturn may be behind us.

Short-Term Holders Still Buying Amid Price Decline

According to BeInCrypto, in recent days, short-term holders – i.e. wallets that acquired Bitcoin in the last 155 days – have continued to add to supply despite falling prices.

Read also: Bitcoin Climbs to $114K but Faces Pressure — Can the $110K Support Level Hold?

Currently, this group controls 2,503,798 BTC, up from 2,460,514 BTC in just seven days. This means that there was an accumulation of more than 43,000 BTC during the sharp price correction from $123,000 to $112,000.

Interestingly, the number of short-term holdings is now at its highest level in the last 3 months. This trend is similar to the pattern seen in early June.

Back then, when Bitcoin price dropped from $105,900 to $104,700, short-term holders increased the supply from 2,275,000 BTC to almost 2,287,000 BTC. After the accumulation, the price of Bitcoin then surged to $110,000.

This recurring behavior, where new holders increase their exposure as prices fall, is often taken as a sign of confidence in a short-term recovery.

Selling at a Loss, But Still Buying

At the same time, short-term holders have shown a willingness to bear losses in order to buy Bitcoin when the price drops – something they rarely do unless they anticipate a rebound.

The Short-Term Holder Spent Output Profit Ratio (SOPR) indicator fell to its lowest point in over a month on August 18.

This means that on average, the coins sold by this group are released at a lower price than their acquisition price. In other words, they sell at a loss.

Until now, the SOPR value has remained below 1. SOPR itself is a metric that compares the selling price of Bitcoin to its purchase price.

If the SOPR for short-term holders falls below 1.0, it means that this group on average is realizing losses.

This is often considered a bottoming signal. In early August, a similar SOPR drop (from 1.00 to 0.99) occurred just before the Bitcoin price reversed from $114,000 to a new peak near $123,000.

At that time, selling at a loss signals a capitulation from short-term holders, a “shock” that is often necessary before a price rally begins.

Although some investors are willing to sell at a loss, the overall supply in the wallets of short-term holders remains elevated. This combination – more buyers coming in while others take losses – suggests a shift in sentiment. This is not panic selling.

Read also: XRP Price Falls Below $3 as $1.35 Billion Whale Sell-Off Breaks Market Support

Bitcoin Price Recovery Hinges on One Important Level

Bitcoin price is still under pressure, but some signs point to a possible reversal taking shape. Today the price briefly rose to $113,600, although it is still down 1.3% in the last 24 hours (20/8).

The closest strongest support level is around $111,900. If this area is able to hold, price recovery could begin soon.

On the upside, the nearest resistance is around $114,600. The next important barriers are at $116,715 and $118,197, where the latter level is a major pivot point from the previous swing high .

If the price manages to break clearly above $118,200, then the momentum is most likely back in favor of the bulls.

The combination of short-term holder conditions – increased supply and negative SOPR values – has often signaled a local bottom in the past. The former case even triggered a rally of over $10,000 in just a matter of days.

If the current pattern repeats, Bitcoin price could potentially be poised for another upside push. However, if the price breaks down and misses the $111,900 level, then a deeper correction could occur, invalidating the bullish scenario.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. Bitcoin Price: Short-Term Holder Buying Bottom. Accessed on August 21, 2025