A decrease in Bitcoin's STH SOPR may indicate a slowdown in the upward trend and price correction.
Monitor important support at 85K USD and resistance at 99K USD to assess Bitcoin's next move.
Bitcoin [BTC] is facing challenges in the short term, with the STH SOPR (Short-Term Holder Spent Output Profit Ratio) showing signs of decline. A decreasing STH SOPR typically indicates that short-term holders are taking profits or recognizing losses – usually a sign of a slowdown in upward momentum.
This change may signal an accumulation phase, or in a more negative scenario, a deeper price correction. As usual, the market is closely monitoring this reaction to assess Bitcoin's short-term direction.
STH SOPR trend and market dynamics
Source: Cryptoquant
Currently, Bitcoin's STH SOPR is around 1 – reflecting a balance between profits and losses for short-term holders. This is a shift from the exuberant bull phase at 108K USD, with a neutral SOPR typically signaling an accumulation or correction phase.
Furthermore, a redistribution of Bitcoin among long-term and short-term holders is occurring, a common sight at local market peaks. If the STH SOPR continues to decline, selling pressure may increase, especially around the realized price levels near 85K USD and 99K USD.
Bitcoin: Supply dynamics and market behavior
The interaction between long-term and short-term holders plays a crucial role in shaping Bitcoin's price trend. An increase in STH is often associated with market tops, contributing to high volatility.
The recent neutral stance of the STH SOPR suggests selling pressure at breakeven – leading to investor indecision. Resistance around the 85K–99K USD range further indicates that careful accumulation or safe accumulation may occur, with the potential for greater short-term volatility.
Next direction
Source: Cryptoquant
The STH SOPR trend of Bitcoin indicates a critical phase for market sentiment. Investors should monitor the important support at 85K USD and resistance at 99K USD as signals for the next move.
A breakdown below 85K USD may invite further selling pressure, while reclaiming the 99K USD mark could trigger a new upward momentum. With the ongoing accumulation phase, careful accumulation may be feasible, but traders need to prepare for potential volatility.
