In a recent analysis, it was observed that short-term investors' activities significantly influence Bitcoin's price fluctuations. This was determined using a technical indicator, the Bollinger Band, applied to the SOPR (Spent Output Profit Ratio) on-chain data.

Typically, in a bull market, a short-term rebound is often witnessed when the short-term SOPR hits the Bollinger Band's bottom. This trend is particularly noticeable in the current adjustment period, where general investors' positive sentiment has been dampened, and the market's overheating is cooling down.

Given these circumstances, a rebound can be expected post this adjustment period. This optimistic outlook is based on the historical performance and resilience of the crypto market.

- Written by Crypto Dan.