Bitcoin Market Observation: STH SOPR Declines, Facing Deeper Adjustment

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Recently, the pressure on the Bitcoin (BTC) market has increased, with on-chain data indicating that short-term holders (STH) are showing a greater willingness to sell. CryptoQuant data shows that STH SOPR (Short-Term Holder Realized Profit Ratio) continues to decline, suggesting that the market may enter a deeper adjustment or consolidation period.

Implications of STH SOPR Decline

Increased Loss Selling: Panic selling has led short-term holders to sell at a loss.

Leverage Liquidation: Margin traders are forced to close their positions, further suppressing prices.

Lack of Confidence: Confidence among short-term investors is weakening, leading to decreased demand.

Whale selling behavior has intensified market volatility and created downward pressure on prices.

Price Dynamics and Outlook

Bitcoin's price is close to a key support level of $93,491, but if whales continue to sell, it may drop further.

Bearish View: If buying demand does not recover, prices may continue to consolidate.

Bullish View: Some investors see the current adjustment as an accumulation opportunity, expecting macroeconomic improvements to support a BTC rebound.

Macroeconomic Impact and Market Correlation

Bitcoin's performance is closely related to global stock markets. Recently, due to inflation and economic concerns, the decline in US-China stock markets has dragged down crypto market sentiment, intensifying selling pressure.

Current Status of Bitcoin

As of the time of writing, BTC is priced at $98,368.93, up 1.2% for the day, but down 11% from the high earlier this month. The market is at the intersection of recovery and adjustment, with short-term direction still unclear.

Summary

Short-term risks for Bitcoin have increased, with the decline in STH SOPR and whale selling being key influencing factors. However, with improvements in market sentiment and the macroeconomy, BTC is still expected to break through $100,000. Investors need to remain vigilant and adapt flexibly to market changes.

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