🚨 Bitcoin Short-Term Holders SOPR at a Critical Level, How Will the Market React Next?
Recently, the price fluctuations of Bitcoin have drawn a lot of attention, especially with several key indicators that may signal the future market direction, one of which is the STH-SOPR indicator.
On-chain technical analyst Kyle Doops uses the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) indicator to provide us with insights into Bitcoin's potential future trends. This indicator focuses on transactions over the past 155 days to help us understand whether short-term investors are selling Bitcoin at a profit or a loss.
The analysis reveals that although Bitcoin's price is gradually approaching $100,000, the STH-SOPR indicator has maintained an average of 1.02 over a 30-day period, which may indicate that short-term investors are taking profits, and the market may experience a correction.
Historically, this trend usually provides new investors with an opportunity to purchase Bitcoin at better prices. In this regard, analyst Doops added that the buying opportunity may be right in front of us.
Meanwhile, the massive sell-off by long-term Bitcoin holders also indicates the possibility of a market correction. Data shows that since October, these long-term holders have chosen to take profits as Bitcoin prices approached $100,000, with over 128,000 coins sold so far, marking a critical phase for the market that may intensify volatility.
Despite the significant sell-off by long-term holders, the Bitcoin spot ETF market has absorbed nearly 90% of the sell-off pressure. This strong institutional demand seems to be driving BTC up, and if its value is pushed above the critical level of $100,000, it could change the dynamics of the cryptocurrency market.
After hitting a high of $99,800 last Friday, Bitcoin experienced a subsequent correction, with prices dropping to a low of $91,000 on Monday. The market generally believes this decline is due to long-term investors taking profits and retail investors gradually selling off.
Although BTC has experienced a maximum drop of over 8% in recent days, with the possibility of further declines, trading volume has increased by more than 50% in the past 24 hours, showing that investor sentiment remains positive.
What does everyone think? How do you believe Bitcoin will move next? See you in the comments!
