Analysis: The Bitcoin market is experiencing a healthy pullback, and new entrants are "Cut Loss" leaving the market.

On August 26, CryptoQuant analysts stated that a typical market clearing is underway. On-chain data shows that the latest Bitcoin investors entering the market are cutting losses and exiting, while more experienced holders are absorbing the chips from these sell-offs. This is not a signal of systemic weakness, but rather a constructive adjustment that helps clear speculative leverage, which in turn strengthens the market's foundation. The pain points are almost entirely concentrated on the latest entrants. Investors holding coins for less than a month currently have an average unrealized loss of -3.5%. Their reaction is very direct: they are selling. We have seen a significant decrease in the supply held by this group in recent weeks. This is textbook 'panic cut loss.' In stark contrast, the broader short-term holder (STH) group remains robust and profitable, with an overall unrealized gain of +4.5%. This indicates that while the newest newbie investors are forced to exit, those holding coins for 1-6 months have not only maintained their positions but are also in a relatively comfortable profit state. The decline in total STH supply is not a sign of panic spreading, but rather a direct result of 'speculative tourists' capitulation. This is a structural favourable development. The market is clearing out the weakest holders, transferring Bitcoin to holders with lower costs and stronger conviction. As the panic selling pressure is released, the upward selling pressure in the market is greatly reduced, making the price structure more solid. Although this adjustment is very painful for recent high-position buyers, it is precisely this clearing event that establishes a solid support base for the next major rise.