Bitcoin STH-SOPR Falls Below 1.0 for the First Time Since April – What This Means

Bitcoin is showing signs of renewed weakness as short-term investors begin to fold under selling ￰0￱ to the latest data from CryptoQuant, the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) has fallen to 0.992, its lowest level since late ￰1￱ key on-chain metric tracks the average profit or loss realized by Bitcoin holders who have owned their coins for less than 155 days — a group often associated with speculative or reactive ￰2￱ Reading: Kadena Shuts Down Operations – Team Confirms Immediate Cease Of All Activities When the STH-SOPR dips below 1.0, it indicates that these holders are selling their coins at a loss, signaling a wave of capitulation and rising fear among newer market ￰3￱ current value implies an average loss of 0.8%, reflecting a notable shift in sentiment after weeks of volatile price action.

Historically, such phases of short-term capitulation often mark moments of emotional exhaustion, where retail traders give up amid ￰4￱ this can reinforce short-term bearish pressure, it also tends to precede market stabilization — as weaker hands exit and long-term investors absorb ￰5￱ STH-SOPR Signals Short-Term Weakness and Long-Term Opportunity According to CryptoOnchain’s latest insights shared on CryptoQuant, Bitcoin’s Short-Term Holder Spent Output Profit Ratio (STH-SOPR) remains below the crucial 1.0 threshold, reinforcing a bearish short-term ￰6￱ long as both the STH-SOPR and its 14-day moving average stay under this key level, the indicator acts as a form of resistance — reflecting that short-term holders continue selling at a ￰7￱ such conditions, every price rally risks being met with renewed selling pressure, as these investors look to exit positions at break-even or with minimal loss, creating a ceiling for upward momentum.

However, this same behavior can also plant the seeds for a long-term bullish setup. Historically, extended periods of loss realization by short-term holders have coincided with the final stages of market ￰8￱ process — often described as a “cleansing” phase — shakes out weak hands and redistributes Bitcoin to long-term holders who are less sensitive to short-term ￰9￱ capitulation reaches its peak, it often signals the market is approaching “maximum pain”, a point that tends to precede strong ￰10￱ Bitcoin’s current structure suggests ongoing weakness, this phase could also mark the foundation of the next ￰11￱ should closely monitor the STH-SOPR for a decisive reclaim above 1.0, as that would confirm a shift from loss-driven selling to profit realization — signaling renewed market strength and the potential start of a new bullish ￰12￱ Reading: Bitcoin Trapped On Binance: The Battle Between $107K and $119K Heats Up Bears Defend Resistance, Bulls Struggle to Reclaim Momentum Bitcoin is currently trading around $109,400, showing a modest rebound but still facing strong resistance at higher ￰13￱ seen in the 1-day chart, BTC remains trapped below both the 50-day and 100-day moving averages, which are now converging near $112,000–$114,000 — a zone that has repeatedly acted as supply during recent ￰14￱ 200-day moving average, positioned around $106,000, continues to provide short-term support.

However, the repeated retests of this level suggest weakening buyer ￰15￱ inability to sustain a close above $110,000 highlights persistent selling pressure, with traders preferring to de-risk amid broader market ￰16￱ Reading: Hyperliquid Futures Indicator Signals Whales Are Going Long – Details If Bitcoin manages to reclaim $112,000, momentum could shift toward $117,500, the key horizontal resistance and previous range high. A decisive breakout above this level would invalidate the recent bearish structure and open the path toward $123,000. On the downside, failure to hold the $106,000–$107,000 support range could expose BTC to further downside risk, with potential targets near $102,000 or even $98,000 if selling ￰17￱ image from ChatGPT, chart from ￰18￱