Bitcoin STH SOPR declines, indicating that BTC may face a deeper market correction

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Currently, the market sentiment for Bitcoin (BTC) is quite complex. Although it has not formed a clear bearish trend, the difficulty of breaking through $100,000 in the short term has increased due to multiple pressure factors. Here is an in-depth analysis of the current Bitcoin market:

1. STH SOPR Indicator and Market Correction

STH SOPR (Short-Term Holder Profit/Loss Ratio) is declining:

According to data from CryptoQuant, STH SOPR is declining, reflecting that short-term holders of Bitcoin are selling their positions at a loss. This indicator is typically used to measure the profitability of short-term holders. When STH SOPR declines, it indicates that short-term holders in the market are losing and selling, which may signal a shift in market sentiment to pessimistic.

The reasons for the decline in STH SOPR may include:

Market sentiment turning bearish: Investors may begin panic selling to avoid larger losses.

Margin trading liquidation: Investors using leveraged trading may be forced to close their positions during market corrections, intensifying selling pressure.

Declining confidence among short-term traders: Due to market uncertainty, short-term investors may lose confidence in Bitcoin, reducing buying demand.

2. Whale Activity and Price Pressure

Whale Deleveraging:

A key characteristic of the current Bitcoin market is that whales (large holders) are deleveraging. The deleveraging of whales typically increases selling pressure in the market, potentially leading to a downward price movement for Bitcoin. Whale behavior often amplifies market dynamics, exacerbating price volatility and potentially triggering broader sell-offs.

Currently, the Bitcoin price is approaching a key support level of $93,491. If whales continue to sell, the market may break this support level, leading to a deeper correction.

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