Bitcoin Market Stress Isn’t Over: Short-Term Holders Remain Underwater | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Bitcoin has managed to reclaim the $88,000 level, yet it continues to struggle below the key $90,000 threshold, failing to sustain any meaningful breakout since early December. Despite several recovery attempts, upside momentum remains weak, reinforcing a broader sense of indecision across the market.

As fear and apathy dominate investor behavior, a growing number of analysts are now openly calling for a bear market to unfold in 2026, arguing that the current structure lacks the conditions needed for a renewed bullish phase.

Related Reading: End Of Bitcoin Distribution? Key Data Reveals A Shift In LTH BehaviorThis cautious outlook is reinforced by on-chain data shared by top analyst Axel Adler. According to his latest report, short-term holders (STHs) are firmly underwater, with Bitcoin trading well below their average cost basis. The STH Realized Price continues to trend lower, a signal that new demand entering the market is weak and increasingly price-insensitive.

Adler notes that this environment reflects pressure from above rather than outright capitulation. While sellers are active, the market has not yet reached the type of forced liquidation typically associated with cycle lows.

Instead, Bitcoin appears trapped in a prolonged stress regime, where confidence erodes gradually and rallies are sold into rather than followed through. Until short-term holder profitability improves, sentiment is likely to remain constrained.

Short-Term Holder Stress Persists

Adler’s latest analysis of Short-Term Holder (STH) Realized Price highlights why Bitcoin remains locked in a stress regime despite recent attempts to stabilize. The chart compares BTC price with the STH Realized Price—the average cost basis of coins held for less than 155 days—alongside stress indicators and weekly changes in that cost basis.

Bitcoin STH Realized Price | Source: Axel AdlerIn this framework, the black line represents Bitcoin’s market price, while the orange line tracks the STH Realized Price. Additional overlays, including the STH Stress Score and weekly percentage changes, help contextualize shifts in short-term positioning.

According to Adler, Bitcoin has traded consistently below the STH Realized Price since October 17, confirming that stress mode remains active. The weekly change in STH Realized Price has stayed in negative territory and recently reached local lows, signaling that short-term holders continue to redistribute coins at lower prices rather than accumulate at higher levels. This behavior reflects weak incoming demand and reinforces overhead pressure.

Related Reading: Ethereum Nearing A Turning Point? Supply-Demand Structure Suggest A Shift Is Coming In 2026Price performance across timeframes remains mixed. While Bitcoin has shown modest stabilization over shorter horizons—up roughly 0.9% on the week and 2.3% on the month—the broader picture remains fragile.

The 90-day performance is deeply negative at −26.7%, indicating that stress dominates across all major timeframes. Adler’s forecast model points to continued downside pressure, with an expected weekly decline of around 3% if current conditions persist.

Crucially, the declining STH Realized Price lowers the resistance “ceiling,” reducing the distance required to return to healthier conditions. However, it also underscores persistent weakness in new demand. A meaningful improvement would require the STH Realized Price to stabilize and turn higher while Bitcoin holds current price levels.

Bitcoin Holds Structure But Remains Capped Below Resistance

The weekly Bitcoin chart highlights a market caught between long-term structural support and persistent overhead resistance. BTC is trading near the $88,000–$89,000 zone, a level that has acted as a pivot since late November. While price has managed to reclaim this area, it has repeatedly failed to sustain a breakout above $90,000, signaling hesitation rather than renewed bullish momentum.

BTC consolidates above key level | Source: BTCUSDT chart on TradingViewFrom a trend perspective, Bitcoin remains above its 200-week moving average, which continues to slope upward and currently sits well below price, preserving the broader bullish market structure. The 100-week moving average is also rising and has provided dynamic support during recent pullbacks, reinforcing the idea that long-term buyers are still defending key levels. However, the 50-week moving average has flattened and now acts as immediate resistance, aligning with the broader supply zone between $90,000 and $95,000.

Related Reading: Bitcoin Sees Post-Capitulation Conditions Align: Selling Pressure Falls 80%After a surge in activity during the sharp correction from October highs, recent weeks show declining volume, suggesting reduced participation and growing apathy among market participants. This environment often precedes a directional move but does not yet favor a clear upside resolution.

Technically, as long as Bitcoin holds above the rising 100-week moving average, downside risk appears structurally contained. However, failure to reclaim the 50-week average keeps the market vulnerable to extended consolidation or a deeper corrective phase before any sustainable recovery can develop.

Featured image from ChatGPT, chart from TradingView.com

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