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Bitcoin Short-Term Holders Are Selling at a Loss: What This Means For BTC

Amid Bitcoin’s ongoing upward momentum in price, a key on-chain Bitcoin metric has been observed that offers clues about the market’s next direction. This notable indicator known as the Short-Term Holder Spent Output Profit Ratio (STH SOPR) which reveals the behavior of Short-Term Holders (STHs) has shown that STHs have started to sell at a loss. This metric compares 30-day STH SOPR to its 365-day counterpart and provides insight into whether short-term investors are realizing profits or losses. Related Reading: Is Bitcoin’s Upward Cycle Back? Key Insights Into The Latest Recovery Bitcoin Short-Term Holders Realized Losses To grasp what the Short-Term Holder’s current selling at a loss means for the market, it’s important to first understand its broader market implications. Darkfost, the CryptoQuant analyst behind the revelation of this data reveals that when STH SOPR turns negative, two scenarios often unfold “holding” and “capitulation” The analyst mentioned that some STHs may hold their BTC, using their realized price as a potential support level, while others could capitulate, triggering further corrections. Historically, these periods of STH losses have marked attractive entry points for long-term investors. BTC short-term holders start to sell at a loss “Historically, when this metric turns negative, it often highlights attractive entry points for the long term.” – By @Darkfost_Coc Read more ????https://t.co/A4jLhI7hMG pic.twitter.com/zeg31MtQqc — CryptoQuant.com (@cryptoquant_com) January 21, 2025 However, he further emphasizes that confirming such signals requires examining additional metrics and assessing the overall market sentiment. In Darkfost words: Historically, when this metric turns negative, it often highlights attractive entry points for the long term. However, it’s essential to confirm such signals by cross-referencing with other metrics and assessing the broader market sentiment. MVRV Ratio Highlights Potential Market Trends Besides the STH realized losses suggesting potential attractive entry points for long-term investors, Bitcoin’s Market Value to Realized Value (MVRV) ratio has also indicated an interesting trend incoming for Bitcoin. Another CryptoQuant analyst known as Tugbachain recently shared in a post on the CryptoQuant QuickTake platform that currently, the MVRV ratio stands at 2.4, and it is approaching a key support level. If it breaks below this support and then reverses its downtrend, it could climb back into the 4-6 range historically associated with Bitcoin peaks, the analyst reveals. For context, the MVRV ratio is an indicator that measures whether a cryptocurrency is overvalued or undervalued by comparing its market capitalization to the value at which it was last moved. Related Reading: Bitcoin Struggles For Direction Post-Trump Disappointment – What Next? According to Tugbachain, over multiple halving cycles, the MVRV ratio has proven to be a reliable tool for identifying market tops and bottoms, as well as shorter-term fluctuations adding credibility to the latest indication. Featured image created with DALL-E, Chart from TradingView Bitzo

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Bitcoin Price Eyes New Heights: Will It Smash Another ATH?

Bitcoin price started a fresh increase above the $104,000 zone. BTC is consolidating above $105,000 and might aim for a new all-time high. Bitcoin started a decent increase above the $102,500 resistance zone. The price is trading above $104,500 and the 100 hourly Simple moving average. There was a break above a connecting bearish trend line with resistance at $104,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start another increase if it stays above the $103,500 support zone. Bitcoin Price Regains Traction Bitcoin price started a decent upward move above the $102,500 zone. BTC was able to climb above the $103,500 and $104,000 levels. The bulls even pushed the price above the $105,000 level. Besides, there was a break above a connecting bearish trend line with resistance at $104,000 on the hourly chart of the BTC/USD pair. The pair surpassed the 50% Fib retracement level of the downward move from the $109,112 swing high to the $100,114 low. Bitcoin price is now trading above $104,500 and the 100 hourly Simple moving average . On the upside, immediate resistance is near the $107,000 level. It is close to the 76.4% Fib retracement level of the downward move from the $109,112 swing high to the $100,114 low. The first key resistance is near the $107,500 level. A clear move above the $107,500 resistance might send the price higher. The next key resistance could be $109,000. A close above the $109,000 resistance might send the price further higher. In the stated case, the price could rise and test the $110,000 resistance level and a new all-time high. Any more gains might send the price toward the $112,500 level. Downside Correction In BTC? If Bitcoin fails to rise above the $107,000 resistance zone, it could start a downside correction. Immediate support on the downside is near the $104,500 level. The first major support is near the $103,500 level. The next support is now near the $102,800 zone. Any more losses might send the price toward the $100,500 support in the near term. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $104,500, followed by $103,500. Major Resistance Levels – $107,000 and $108,500. Bitzo