Is a bearish signal intensifying? — On-chain analysis warns of market challenges

2026-01-13 09:55:08

Abstract generation in progress

CryptoQuant analyst Axel has issued a market warning based on the latest on-chain data. According to the analysis as of December 23, 2025, short-term holders (short-term traders) are currently in a loss zone, and it has become clear that the overall market sentiment is clearly leaning towards a negative direction.

Short-term Market Structure Vulnerability Comes to Light

From a technical analysis perspective, phenomena where support levels that have previously held are now turning into resistance have been observed. This transition strongly suggests that the short-term market structure is weakening. In other words, previous support levels are beginning to function as new resistance lines within a downtrend.

In such scenarios, an increase in short-term traders realizing losses and selling off is observed, which could further pressure market psychology.

Impact of Worsening Market Sentiment

The situation where short-term holders are incurring losses reflects the overall market psychological state. During this period, there is a tendency for more traders to focus on long-term earning opportunities such as staking yields, leading to a more pronounced divergence in strategies from short-term trading.

This analysis, warning of the continuation of a bearish phase, suggests the need for position adjustments. For market participants, it is undoubtedly a phase that requires cautious judgment and strategic positioning.

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