Bitcoin’s ($BTC) current market structure signals weakness as the on-chain data displays bearish pressure. Specifically, Bitcoin’s sentiment index has dropped to the risk-off territory at 40%. As per the data from Axel Adler Jr., a popular crypto analyst, the short-term Bitcoin ($BTC) holders are underwater, while the realized price shows resistance ranges across diverse cohorts. As a result, this plunge in price action and sentiment indicates rising selling pressure, as usually happens before a market bounce.
☕️Adler AM: Short-Term Holders Underwater, Sentiment Confirms Market WeaknessSentiment and on-chain structure are synchronously pointing to market weakness. Short-term holders are underwater, and all key nearby support levels have turned into resistance.👇… pic.twitter.com/ncKObKRzA9
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) December 23, 2025
Bitcoin Sentiment Index Dips to 40%, Confirming Risk-Off Mode
Based on the on-chain data, the sentiment index of Bitcoin has seen a noteworthy slump to 40%. This signifies a sheer decrease from optimism to a considerably risk-off range. The respective metric aggregates the factors like volume delta, open interest, taker volume, and price to gauge wider market psychology. Particularly, following the peak in December’s early days, the index entered a sustained correction.
Apart from that, the 30-day simple moving average also presents a decline, confirming a noteworthy change in short-term outlook. Hence, after a failed attempt for the Santa rally, the sentiment plunged to 40% on the 22nd of December, highlighting a broader risk-off mode. At the moment, the price of the leading cryptocurrency is hovering around $87,400, below all major short-term holder realized price spots.
Market Recovery Requires $90K Rebound and Consolidation
According to Axel Adler Jr., the present price level below the STH Realized Price indicates that most of the short-term $BTC holders are in losses. In line with the historical data, this creates massive selling pressure amid price bounces toward key breakeven levels. Keeping this in view, a shift to a profitable area needs a rebound and subsequent consolidation above the $90K spot.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
UTXO Management Launches Dual-Category Digital Credit Yield Funds
UTXO Management announced the formation of the UTXO Preferred Income Strategies LP, issuing a dual-class digital credit income fund, divided into a senior income class and a total return class. The former seeks steady cash flow, monthly distributions, and enjoys priority allocations; the latter uses leverage to pursue capital appreciation. It also issued STRC preferred securities, combining fixed-income and digital asset exposure, offered only in a private placement to qualified investors.
ChainNewsAbmedia1h ago
U.S. Military Confirms Bitcoin Node Operations as Multiple Nations Adopt Crypto for Statecraft
Gate News message, April 26 — Admiral Samuel Paparo, Jr., who leads U.S. forces across the Indo-Pacific, told a Senate panel that Bitcoin matters to national security. The Pentagon is running its own Bitcoin node and conducting operational tests to secure and protect networks using the Bitcoin
GateNews4h ago
Bitcoin Funding Rate Turns Negative at -0.0031%, Major CEXs Show Mixed Rates
Gate News message, April 26 — According to Coinglass, Bitcoin's 8-hour average funding rate across the network is currently -0.0031%, indicating a bearish sentiment among traders.
Among major centralized exchanges, funding rates vary: a leading CEX shows 0.0002%, another major CEX at -0.0004%, a th
GateNews7h ago
Whale Deposits 300 BTC Worth $23.4M to CEX After 2-Year Dormancy
Gate News message, a whale has deposited 300 BTC (valued at $23.4 million) into a centralized exchange after remaining inactive for 2 years. These 300 BTC were originally withdrawn from CEX 3 years ago when BTC was priced at $19,329. The whale is currently holding an unrealized profit of $17.6 milli
GateNews9h ago
Metaplanet Issues ¥8B Bonds To Expand Bitcoin Holdings
Metaplanet raises ¥8B through zero-coupon bonds to fund Bitcoin purchases without immediate interest burden.
Firm grows BTC reserves to over 40K coins, targeting 100K by year-end despite valuation-driven losses.
Strategy relies on debt financing as stock declines, reflecting risk amid
CryptoFrontNews9h ago
CryptoQuant Analyst: Bitcoin Must Hold Above $83K to Confirm Market Recovery
Gate News message, April 26 — According to CryptoQuant analyst Axel Adler, short-term holder (STH) selling pressure has notably eased following spring market stress relief, and Bitcoin's market recovery remains underway. Current BTC price has approached the short-term holder cost basis.
Adler
GateNews10h ago
