Bitcoin STH SOPR Metric Nears Upper Threshold — Are Short-Term Holders About To Take Profits?

Following the slight pullback in Bitcoin’s price from the $115,000 level, several on-chain metrics are beginning to flash warning signals , and a possible shift in the current market ￰0￱ of these crucial metrics is the Bitcoin Short-Term Holders ￰1￱ Bitcoin STH SOPR Signals Warning Amid fluctuating market action, Bitcoin Short-Term Holders’ Spent Output Profit Ratio (SOPR) is showing that these investors are approaching a crucial ￰2￱ a recent quick-take post on the CryptoQuant platform, Yonsei Dent, a market expert, outlined that the key metric is drawing close to the upper ￰3￱ STH-SOPR indicator shows the on-chain breakeven threshold for short-term ￰4￱ is worth noting that when the value is more than 1.0, it indicates that these investors are generally making ￰5￱ the other hand, when the metric drops below the 1.0 level, it suggests that the investors are realizing ￰6￱ that the Bitcoin short-term holder SOPR hints at the aggregated action of a large number of market players, the metric also has a strong statistical ￰7￱ 95% of all data points are typically captured by the ±2 standard deviation range.

Therefore, a move above that range takes place less than 5% of the time, which makes this trend an uncommon ￰8￱ a combination of the Bollinger Band setup and the short-term holder SOPR, Yonsei Dent highlighted that a steady move to +2σ usually signals resistance or profit-taking zones. Meanwhile, when it is approaching -2σ, it often suggests support or accumulation opportunities . However, the STH SOPR currently still has some room before reaching the +2σ upper ￰9￱ the metric moves closer to the upper band, Dent has underlined the importance of monitoring the indicator to confirm whether momentum has begun to turn or if short-term overheating is gradually ￰10￱ Has Not Yet Reached Its Top Despite the potential profit-taking from short-term holders, Joao Wedson, the founder of Alphractal, claims Bitcoin is yet to reach its top for this cycle due to past cycles’ ￰11￱ past cycles, few investors were observed buying the top out of euphoria during a similar ￰12￱ previous ATHs, Bitcoin would spike with pure enthusiasm and then plummet just as quickly, barely having time to breathe above new ￰13￱ a result, thousands of investors were stuck at the top, where their profits turned into losses within days.

However, recent trends show that this cycle could be charting a different ￰14￱ reclaiming the $100,000 landmark, BTC appears to have spent almost 1 year holding above this critical ￰15￱ the period, the flagship asset has been consolidating and steadily testing a range that would likely be a pure mania in past ￰16￱ a shocking twist, Wedson highlighted that the real euphoria has not yet kicked ￰17￱ this point, the expert is uncertain whether it will happen this cycle or the true top is still ahead , noting that euphoria came before consolidation in previous cycles. However, it appears that euphoria was preceded by consolidation, which changes everything this time.