Bitcoin STH-SOPR Metric Returns Above 1 After 20 Days
The price of Bitcoin has shown resilience over the weekend, maintaining a level above $110,000 despite bearish sentiment. On August 5, it experienced a mild correction due to weaker-than-expected U.S. employment data. Current on-chain metrics suggest the market may have absorbed excess selling pressure.
Key Observations
- Bitcoin short-term holders (STH) are locking in profits.
- The Short-Term Holder Spent Output Profit Ratio (STH-SOPR) metric is above 1 for the first time in 20 days, indicating that STHs are selling at a profit.
- A value below 1 indicates short-term holders capitulating and selling at a loss.
- The return above the 1 threshold could signal the end of the distribution phase, suggesting a possible recovery rally.
- Investors should exercise caution as the market may still inflict further pain on short-term holders before a potential upward movement.
Current Price Status
Bitcoin's price is approximately $110,200, showing no significant change in the last 24 hours but up nearly 2% over the past week.
