According to CryptoQuant, a market correction in Bitcoin is currently occurring, offering potential for a stronger market in the future. This adjustment, fueled by increased selling from new investors, is revealing who has confidence and conviction in the asset’s long-term growth. This phenomenon displays textbook case of panic selling, where recent Bitcoin buyers, those holding for less than a month, are experiencing significant unrealized losses of -3.5%. 7 This group’s short-term selling action exemplifies market correction dynamics. On the other hand, the broader group of short-term holders (STH) is displaying resilience, remaining profitable with an overall unrealized gain of +4.5% They are not only holding their positions but also reaping gains within the correction. This trend indicates a shift in market structure as those with stronger conviction and lower costs remain while others sell at a loss. The decline in STH total supply is not indicative of widespread panic but rather the capitulation of speculative investors, which has led to a decrease in selling pressure above the market’s average price. As panic selling subsides, selling pressure above the market significantly decreases resulting in a more stable price structure. Although this adjustment is painful for recent high-level buyers, it lays a solid foundation for a future upward movement.