The price outlook for Bitcoin suggests potential consolidation below the declining STH SOPR and key support levels.
As the short-term holders' spending output profit ratio (STH SOPR) declines, Bitcoin faces potential consolidation or deep adjustment, indicating investor indecision.
The current key support level is at $85,000, and the resistance level is at $99,000, which are critical levels for predicting Bitcoin's next significant movement.
The decline in STH SOPR indicates that the market is at a critical turning point, and breaking below the support level could trigger further declines.
The decline of Bitcoin's STH SOPR has raised concerns about a potential price adjustment, and key support and resistance levels need to be monitored in the coming trading days.
Bitcoin's STH SOPR fluctuates around the neutral point of 1, indicating a balance between short-term profits and losses. This position suggests a significant shift in the bullish enthusiasm that occurred during Bitcoin's recent surge to $108,000. A neutral SOPR metric typically indicates consolidation or potential price adjustments within the market.
Furthermore, the ongoing shift from long-term holders to short-term holders is a typical sign often accompanied by local price peaks. If STH SOPR continues to trend downward, increased selling pressure is expected, especially near the critical price points of $85,000 and $99,000.
The interaction between long-term holders and short-term holders is crucial in determining Bitcoin's price trajectory. A recent increase in STH supply typically signals a market peak, leading to heightened volatility. The current neutral positioning of STH SOPR indicates selling pressure at the breakeven point, which is fostering a climate of investor indecision.
The resistance within the range of $85,000 to $99,000 further reinforces the idea of investors adopting a consolidation or cautious accumulation strategy, with potential for increased volatility in the short term.
The current trend of Bitcoin's STH SOPR indicates that the market is at a critical stage of sentiment analysis. Investors must closely monitor the clear support level at $85,000 and the resistance level at $99,000 as indicators of future market trends.
Breaking below the $85,000 level could trigger further selling pressure, while a rebound above the $99,000 level may indicate a resurgence of bullish sentiment. As the market establishes itself during this consolidation phase, cautious investors may consider gradually increasing their positions but should remain vigilant for signs of potential volatility shifts.
In summary, the trend of Bitcoin's STH SOPR indicates that market sentiment is constantly changing, requiring careful monitoring. Investors should pay attention to key price levels to respond to upcoming market decisions. Cultivating a disciplined approach amid volatility is crucial for capitalizing on Bitcoin's price movements, with a focus on the overall pattern before making significant trades.
A short position can be placed at $99,300: with a risk control of 1,000 points: target 2,000-2,500 points.
A long position at 96,000 with a risk control of 1,000 points and a target of 2,000 points: After a long period of consolidation, one must hold onto their spot positions.
Currently, I hold a short position at $98,200, and I will also add to my position if it goes up.
