Recent data reveals that Short-Term Holders (STHs) have been less aggressive in selling their Bitcoin holdings during the latest price dip. This is evident in a notable decrease of 16.8K BTC moved to exchanges at a loss, signifying a potential shift in market sentiment and behavior among these short-term holders. This trend indicates that more STHs are holding on to their positions rather than succumbing to panic selling. The shrinking amplitude of capitulation selling events (represented by diminishing blue arrows) further reinforces this positive sign.
Previously, STH capitulations have triggered large-scale selling pressure which could accelerate price declines. However, with fewer instances of such selling now, it suggests a stronger market floor and reduced downside volatility in future corrections.