Short-Term Bitcoin Selling Pressure Diminishes as Price Stabilizes

Bitcoin is currently trading at $98,000, below the $100,000 mark, showing a 6% decline over the past month and a 10% decrease from its all-time high of over $109,000.

Short-Term Bitcoin Sellers Are Fading

The Short-Term Holder Spent Output Profit Ratio (STH SOPR) indicates a shift in market sentiment:

STH SOPR measures if short-term holders are selling at a profit or loss.
A value above 1.00 indicates profit-taking; below indicates losses.
This metric has shown that short-term holders sold at a loss during three recent corrections.
Recent values were 0.987 on January 8, 0.990 on January 27, and 0.984 on February 2.

Short-Term Holders and Future Market Sentiment

Current STH SOPR stands at 0.998, suggesting:

Short-term holders are no longer selling at significant losses.
Fear-driven selling from earlier in the year may be subsiding.
Consolidation between $94K and $97K indicates potential stabilization.

The near-neutral STH SOPR could lead to a more stable price environment. If positive sentiment continues, Bitcoin might attract renewed interest and potentially return to higher levels.