Source: CoinTribune Original Title: CryptoQuant Flags A Rare BTC Market Reset Event Original Link: https://www.cointribune.com/en/cryptoquant-flags-a-rare-btc-market-reset-event/

Bitcoin Price Below $90,000 Signals Major Market Reset

Bitcoin’s pullback below $90,000 masks a significant underlying shift in market dynamics. On-chain data reveals profound changes in investor behavior, particularly among long-term holders.

Long-Term Holders Suspend Selling: A Reset Signal?

According to analysis from CryptoQuant, long-term Bitcoin holders (LTH) — those holding BTC for more than 155 days — have halted their sales as the market dropped below $90,000.

The Bitcoin SOPR ratio (comparing the profitability of UTXOs spent by long-term and short-term holders) has fallen to 1.35, marking its lowest level since early 2024. This key indicator of selling pressure represents an essential metric for understanding market dynamics.

The ratio’s decline signals the end of an intense distribution phase by long-term holders. These historically strong market actors have stopped taking profits or cutting losses, indicating a structural market reset.

CryptoQuant’s report highlights a “complete market reset,” suggesting that speculative excess from earlier in the bullish cycle has been cleared:

• End of selling pressure: Long-term holders, typically drivers of major distribution phases, have withdrawn
• Reduced profitability incentives: Lower profitability levels diminish the motivation for these investors to sell
• Purged speculation: Speculative foam that drove the ratio to cycle highs has been eliminated

As analysts summarize: “The drop suggests a massive market reset. The speculative foam that had driven the ratio to highs has been purged.” This structural change could herald a new market equilibrium, though no clear signal of an imminent bullish restart has emerged.

Short-Term Speculators Show Deep Uncertainty

While historic holders have stepped back, short-term holders (STH) now dominate market activity, though their behavior remains inconsistent and erratic.

CryptoQuant observes that short-term speculators exhibit rapid net position changes over brief periods. Net position changes showed a strong upward peak on November 24 before turning negative on December 1 — illustrating deep uncertainty among recent market participants whose decisions appear driven by short-term fluctuations rather than fundamental conviction.

Unlike long-term holders who have suspended activity, speculators continue entering and exiting the market rapidly. This segment now primarily generates profitable transactions, but the lack of clear direction and emotional volatility could keep Bitcoin in a turbulence zone without a solid support base for a new bullish impulse.

Market in a Waiting Phase

Bitcoin’s price reflects less market inertia than a silent structural change. With selling pressure from historic holders removed, the market has entered a waiting phase. It remains uncertain whether this reset prepares a lasting rebound or prolongs current instability.