Bitcoin Short-Term Holders Panic Capitulate $2.6 Billion In BTC Crash

On-chain data shows that Bitcoin short-term holders have panic sold $2.6 billion worth of coins in the crash following the new all-time high. Bitcoin Short-Term Holders Have Sent Huge Volume In Loss To Exchanges As analyst James V. Straten explained in a new post on X, Bitcoin short-term holders have shown signs of capitulation during the latest drop in the cryptocurrency’s price. The “short-term holders” (STHs) refer to the BTC investors who bought their coins within the past 155 days. The STHs make up one of the two main divisions of the market, the other one being the “long-term holders” (LTHs). Related Reading: Solana Open Interest Plunges 20%: What It Means For Price Statistically, the longer an investor holds onto their coins, the less likely they are to sell at any point. This means that the STHs, who are relatively new hands, generally sell quickly whenever an asset crash or rally occurs. The LTHs, on the other hand, usually show resilience, only selling at specific points. One way to track whether either of these groups is selling is through the transfer volume they are sending to exchanges. First, here is a chart that shows the trend in the Bitcoin exchange inflow volume precisely for the STHs in loss: The value of the metric appears to have shot up in recent days | Source: @jvs_btc on X As displayed in the above graph, the Bitcoin STHs have transferred around $2.6 billion worth of coins in loss to exchanges in the past day, implying that some members of this cohort have capitulated. This spike is huge, but it’s less than the loss-taking event that took place back during the price drawdown that followed the BTC spot exchange-traded fund (ETF) approval. These loss sellers would be those who FOMO’d into the rally that took BTC to a new all-time high beyond the $69,000 level, but their conviction wasn’t strong enough that they were able to hold past the sharp crash that BTC observed shortly after. The STHs aren’t the only ones who have exited the market in this latest price volatility; it would appear that the LTHs have also done some selling. The difference, however, is that these HODLers have made profits. The chart below shows how the exchange transfer volume for the LTHs in profit has looked like recently. Looks like the value of the metric has registered a sharp spike recently | Source: jvs_btc on X The graph shows that the Bitcoin LTHs have participated in their largest profit-taking event since July 2021, transferring tokens worth $1.5 billion to exchanges. Related Reading: Bitcoin Sets New All-Time High Above $69,000 As Institutionals Show FOMO Thus, it would appear that this recent volatility has shaken up the conviction of even some of the diamond hands, although these HODLers have at least still been rewarded with profits. BTC Price At the time of writing, Bitcoin is trading around the $65,800 mark, up 8% in the past week. BTC has gone through a rollercoaster in the past couple of days | Source: BTCUSD on TradingView Featured image from cdd20 on Unsplash.com, Glassnode.com, chart from TradingView.com

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Bitcoin STH Average Cost Basis At $90,950 Why Is It Relevant?

The Bitcoin price continues to dance within the newly formed $80,000 – $85,000 range, showing some level of indecisiveness in its movement. Since the premier cryptocurrency lost its hold above $90,000, investors have wondered whether the ongoing correction is a “buy the dip” opportunity or the market top is in. While there is no surefire way to put these doubts away, on-chain data can provide relevant insights into what is to come. The latest on-chain data suggests the highlighted level below is the one to watch before investors return to the market. Level To Watch Before ‘Buying The Dip’ In a recent post on the X platform, crypto analyst Maartunn shared that it might not be technically secure to reenter the Bitcoin market at the current price. This analysis is based on the movement of the Bitcoin price relative to the current value of the short-term holders’ (STH) average cost basis. Related Reading: Litecoin Price Shows Resilience In Uncertain Market Conditions Whats Next For LTC? The STH average cost basis metric estimates the average price at which short-term holders (investors who have owned Bitcoin for less than 155 days) acquired their coins. It represents a psychological level for BTC investors and could act as a reference point for price analysis, especially during bull cycles. Bitcoin usually trades above the short-term holders’ average cost basis during bull markets, signaling substantial buying pressure and optimistic sentiment from short-term investors. On the flip side, when the price of BTC falls beneath this cost basis as seen in the ongoing correction, it implies that short-term investors are at a loss, which could lead to a sell-off and precipitate significant bearish pressure. According to data from CryptoQuant, the Bitcoin price is currently 6% below the short-term holders’ average cost basis at $90,950. With the flagship cryptocurrency beneath the realized price of short-term holders, the odds are that BTC price could face further selling pressure as the investor cohort looks to minimize their loss. Using this logic, Maartunn noted that investors might want to wait till the price of Bitcoin climbs above the STH average cost price before reentering the market. Interestingly, the short-term investors appear to still be loading their bags. Crypto analyst Ali Martinez revealed in a post on X that short-term holders have purchased more than 35,000 BTC in the past 4 days. Bitcoin Price At A Glance  As of this writing, the price of BTC sits just below the $86,000 mark, reflecting an over 2% jump in the past 24 hours. Related Reading: Whales Add 190,000 Ethereum In The Last 24 Hours The Accumulation Continues Featured image from iStock, chart from TradingView

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Why This Bitcoin Bearish Divergence Could Spell Doom For BTC Rally

A quant has explained how this bearish divergence in Bitcoin on-chain data can lead to a short-term correction in the price. Bitcoin Short-Term Holder SOPR Has Been Slowing Down Despite Price Going Up As explained by an analyst in a CryptoQuant post, a gap has been forming in the purchasing power of short-term holders and the BTC price. The relevant indicator here is the “Spent Output Profit Ratio” (SOPR), which tells us whether investors in the Bitcoin market are selling their coins at a profit or at a loss right now. When the value of this metric is greater than 1, it means the overall market is realizing some amount of profit currently. On the other hand, values below the threshold suggest the average holder is seeing some loss at the moment. Naturally, the indicator at exactly equal to 1 implies the investors are just breaking-even on their investment. Related Reading: Ethereum Active Addresses At Highest Since May 2021, Good News For ETH? The “short-term holder” (STH) group is a Bitcoin cohort that includes all investors who bought their coins less than 155 days ago. The STH SOPR thus measures the profit ratio of selling being done by these holders. To properly assess the behavior of this group, the analyst is using a “rate of change” (ROC) oscillator for the indicator. Here is a chart comparing this momentum oscillator with the BTC price over the last few months: Looks like the metric has been going down in recent days | Source: CryptoQuant As the above graph shows, the ROC of the Bitcoin STH SOPR had been in deep red when the FTX crash took place, suggesting that these investors capitulated during it and realized a large amount of loss. However, as the BTC price has slowly improved from the lows, the ROC has become green. This implies that the STHs who bought during the lows have been selling for profits, leading to a rising SOPR. Bitcoin has continued to see an uptrend recently, but strangely, the STH SOPR ROC has been dropping off. This could be a sign that not many STHs were able to buy during these lows, hinting that their purchasing power is low at the moment. If they had been buying through this rally, they would have continued to harvest more and more profits as the price goes up, but that has clearly not been the case. Related Reading: Bitcoin Price Crystal Ball – What Happens To BTC After Christmas 2022? Such a divergence also formed in the relief rally seen earlier in the bear market, as the quant has marked in the chart. “Last time, this situation led to a bearish correction,” notes the analyst. “If this alignment repeats, then this time, Bitcoin may correct to the $16,500-$17,000 range.” BTC surges up | Source: BTCUSD on TradingView At the time of writing, Bitcoin’s price floats around $17,700, up 5% in the last week.

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Bitcoin Declines Slightly As Short-Term Holders Take Profits

After surging to as high as $20.9k, Bitcoin has today observed a slight decline back into the low $20k levels as a result of profit taking from short-term holders. Bitcoin Short-Term Holder SOPR Has Been Elevated Over The Past Two Days As pointed out by an analyst in a CryptoQuant post, the short-term holders seem to be using the latest price rise for profit taking. The relevant indicator here is the “Spent Output Profit Ratio” (SOPR), which tells us whether the average investor is selling Bitcoin at a profit or at a loss right now. When the value of this metric is greater than 1, it means the overall market is realizing some amount of profit currently. On the other hand, values below the threshold suggest the holders as a whole are selling at a loss Naturally, values of the SOPR exactly equal to one suggest that the investors are just breaking even on their selling at the moment. Related Reading: Why Crypto Market Fear Mirrors Lull In Volatility Now, there is a cohort in the Bitcoin market called the “short-term holders” (STHs), which includes all investors who have been holding their coins since less than 155 days ago. Here is a chart that shows the trend in the BTC SOPR specifically for this holder group over the last couple of weeks: The value of the metric seems to have spiked up in recent days | Source: CryptoQuant As you can see in the above graph, the Bitcoin STH SOPR has been elevated above the 1 level during the last two days or so. This rise has coincided with the BTC price finally surging up after moving sideways around $19k for a long while. This suggests that these investors are using this opportunity to harvest some profits. Related Reading: The Inverted Bitcoin Chart Bears Don’t Wanna See | BTCUSD Analysis October 27, 2022 Such profit-taking is generally bearish for the price of the crypto, and as the chart displays, there were three instances of this kind of trend during the past two weeks. All of those profit realization sprees from the STHs resulted in the price going back down after a short-term rise. This time as well the BTC price has gone down from its high of $20.9k to as low as below $20.1k. before retracing back up some to the current level. BTC Price At the time of writing, Bitcoin’s price floats around $20.5k, up 8% in the last seven days. Over the past month, the crypto has gained 7% in value. Below is a chart that shows the trend in the price of the coin over the last five days. Looks like the value of the crypto has gone down over the last couple of days | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Bitcoin Support Sits At $90,6K Short-Term Holder Realized Price Expert Reveals Key Resistance Level

Bitcoin has been struggling to reclaim the $100K mark, facing intense volatility and selling pressure since the weekend. The market remains uncertain as bulls attempt to defend key support levels while bears push for a deeper correction. Despite this, Bitcoin continues to show resilience, holding above crucial price zones that could determine the next big move. Related Reading: Ethereum Is Testing Key Support on the ETH/BTC Chart A Parabolic Move Could Be Next Top analyst Axel Adler shared key insights on X, revealing that as of February 6, 2025, the most critical support level for BTC is at $90.6K, based on the Short-Term Holder (STH) Realized Price metric. Additionally, another major support level is found at $97.2K, calculated from the Short-Term Holder one-month to three-month Realized Price. These levels indicate where recent buyers are positioned, making them crucial for Bitcoins stability in the current consolidation phase. As the market digests recent volatility, Bitcoins ability to hold above these support levels could set the stage for a renewed rally. If BTC remains strong and demand picks up, breaking above $100K could trigger a push toward all-time highs. However, losing these levels could invite further downside pressure. Investors and analysts are watching closely to see if Bitcoin can regain bullish momentum in the coming days. Bitcoin Metrics Highlight Liquidity Levels  Bitcoin has experienced intense volatility since the weekend, with price action swinging between key levels. After a sharp drop to $91K, BTC quickly rebounded above $100K before settling around $98K. Market sentiment remains fragile as trade war fears continue to shape price movements. The uncertainty surrounding global markets and economic policies has led to increased speculation, with investors closely watching Bitcoins ability to hold above crucial support zones. Top analyst Axel Adler shared insights on X, highlighting key technical levels that could define Bitcoins short-term trend. As of February 6, 2025, the primary support level is at $90.6K, based on the Short-Term Holder Realized Price metric. This level is a critical price point where short-term holders have acquired BTC, making it a strong area of demand. Additionally, another key support zone is at $97.2K, which represents the one-month to three-month Short-Term Holder Realized Price. On the resistance side, Bitcoin faces significant supply pressure at $100.6K, a level where recent buyers have concentrated their entries. This range, identified through the Short-Term Holder one-day to one-week and one-week to one-month Realized Price metrics, acts as a key barrier preventing BTC from breaking higher. If Bitcoin manages to reclaim and hold above this level, the next target would be $105K or higher, opening the door for another attempt at price discovery. Related Reading: Solana Could Target $220 If It Holds Current Levels Analyst Expects Short-Term Bullish Momentum For now, BTC remains in a consolidation phase, with both bulls and bears fighting for control. If Bitcoin holds above its key support levels, a renewed bullish phase could emerge, pushing the price toward new highs. However, losing these zones could trigger another round of selling pressure, potentially sending BTC into lower demand levels. The next few days will be crucial in determining the markets direction. Price Consolidates At Demand Levels: Can BTC Hold? Bitcoin is trading at $99,000 after days of choppy price action, struggling to reclaim the $100K mark. The market remains in a consolidation phase, with bulls attempting to regain control while bears push for further downside. Despite strong demand at lower levels, BTC has yet to establish a firm breakout above key resistance zones. The most crucial support level for bulls to hold is $98K. Maintaining this level could set the stage for a rally, as it has proven to be a strong demand zone in recent sessions. A successful defense of $98K would give buyers the confidence needed to push the price above $100K, a psychological and technical level that must be reclaimed to shift momentum in favor of the bulls. Related Reading: Solana Breakdown Fails Holding $205 Is Crucial To Trigger a Push Higher However, failure to hold above $98K would expose BTC to increased selling pressure. If the price loses the $96K mark, a deeper correction into lower demand zones becomes likely, potentially bringing BTC down to the $92K$94K range. For now, traders are watching these levels closely, as Bitcoin remains at a crucial point in determining whether the next move will be a surge above all-time highs or a continued pullback into lower support zones. Featured image from Dall-E, chart from TradingView

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Bitcoin STH Realized Profit Reveals Strong Support Level Time For A Breakout?

Bitcoins short-term price direction remains uncertain as the market struggles to confirm its next move. Analysts and investors are divided, with some calling for a breakout into new all-time highs while others anticipate renewed selling pressure into lower prices. The price has been consolidating in a narrow range for the past twelve days, holding above the $94,000 demand level and facing resistance below the $100,000 mark. Related Reading: Are Meme Coins Hurting Solana? Rising Selling Pressure Sparks Investor Concerns Key data from CryptoQuant reveals that the nearest support zone for BTC is forming between $91,000 and $95,000. This range is reinforced by two critical technical indicators: the 111-day simple moving average (SMA 111D), currently at $95,000, and the Short-Term Holder (STH) Realized Price, which sits at $91,000. These levels suggest that BTC is trading above historically significant support areas, where short-term holders have realized their profits or losses. While the long-term structure remains bullish, investors are growing impatient as BTC fails to reclaim key resistance levels. If Bitcoin can push above $100K in the coming days, analysts expect a rally into price discovery. However, losing support around $94K$95K could trigger increased selling pressure and a deeper correction into lower demand zones. Bitcoin Prepares For A Decisive Move Bitcoins recent consolidation phase has fueled speculation about a potential breakout, with many analysts suggesting that the market is witnessing the calm before the storm. While short-term direction remains uncertain, the long-term bullish structure remains intact, and many expect BTC to make a strong move toward new all-time highs soon. Crypto analyst Axel Adler shared key CryptoQuant data on X, highlighting that Bitcoin’s nearest support zone is forming around $91,000$95,000. This range is significant because it aligns with the 111-day simple moving average (SMA 111D) at $95,000 and the Short-Term Holder (STH) Realized Price at $91,000. These levels represent areas where short-term holders have historically realized profits or losses, making them crucial for maintaining bullish momentum. On the resistance side, Adler notes that Bitcoin faces a key supply zone between $98,000 and $101,000. This area is defined by the aggregate exit prices of holders with a holding period of one week to one month at $100,800 and those with a one- to three-month holding period at $98,200. Related Reading: Ethereum Forms A Bullish Pattern Expert Reveals Short-Term Price Target As BTC continues to trade within this narrow range, investors are closely watching these levels for a decisive breakout. A push above $101K could trigger a rally into price discovery. While losing support at $91K could lead to further downside. BTC Bulls Face A Big Test Bitcoin is trading at $95,600 after nearly two weeks of sideways movement within a narrow range, fluctuating less than 4% in either direction. This extended period of consolidation has left traders on edge, as they await a decisive move in either direction. For BTC to maintain its bullish structure, the $95,000 level must hold. This price point aligns with technical support, and a break below it could signal strong selling pressure. Bulls face a critical test at this stage, as they must defend this support and initiate a push above key resistance levels. To confirm a breakout, Bitcoin needs to reclaim the $98,000 mark and, ultimately, the psychologically significant $100,000 level. A successful move above these levels would provide the momentum needed to challenge all-time highs and re-enter price discovery. However, failure to hold $95K could trigger a downside move, with BTC potentially testing support zones closer to $91K. Related Reading: Dogecoin Pulls Back To The Golden Ratio Analyst Expects A Bullish Reversal As Bitcoin consolidates, traders remain cautious, watching for volume spikes and increased buying pressure to confirm the next price movement. The coming days will be crucial in determining whether BTC resumes its uptrend or faces further correction. Featured image from Dall-E, chart from TradingView

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Bitcoin Short-Term Holders Just Locked In $647 Million In Profits

On-chain data from Glassnode shows that the Bitcoin short-term holders have recently participated in a massive $647 million profit-taking event. Bitcoin Short-Term Holders Have Realized Large Net Profits Recently According to data from the on-chain analytics firm Glassnode, the short-term holders have given a strong reaction to the $52,000 break. The “short-term holders” (STHs) here refer to the Bitcoin investors who bought their coins within the past 155 days. Statistically, the longer an investor holds onto their coins, the less likely they become to sell at any point. The STHs have a relatively low holding time, so they easily sell during price rallies or crashes. Related Reading: Bitcoin Signal That Has Held Since December Says Its Time To Sell On the other hand, the “long-term holders” (LTHs), which make up the rest of the userbase (that is, those withholding time greater than 155 days), tend to carry a strong resolve. Since the STHs are fickle-minded, it’s not surprising that they have made some selling moves after the latest rally in the asset. One way to gauge the reaction of this cohort is through the “Net Realized Profit/Loss” metric. This indicator keeps track of the net profit or loss the investors realize across the network. The metric finds this value by going through the on-chain history of each coin being transferred right now to check the price it was moved at before. Assuming that a change of hands occurred in the previous transfer and that another such change is happening with the current one, then the coin’s sale would realize a profit or loss equal to the difference between the two prices. The Net Realized Profit/Loss sums up all such profits and losses and outputs the net value. Now, here is a chart that shows the trend in this indicator specifically for the Bitcoin STHs over the past few years: Looks like the value of the metric has been significantly positive in recent days | Source: Glassnode on X As displayed in the above graph, the Bitcoin STH Net Realized Profit/Loss has spiked to highly positive levels recently, implying that these investors’ profits have significantly outweighed the losses. This cohort has realized $647 million in net profits during this latest selling spree. The chart shows that the last time the indicator was at higher positive values was back around the formation of the 2021 all-time high. Related Reading: These Are The Altcoins Drawing Whale Interest, Santiment Reveals The current values aren’t off this mark, but the STH Net Realized Profit/Loss levels that hit back during the first half of the 2021 bull run are still far away. For perspective, the peak in the metric achieved back then was $2.5 billion, which remains the all-time high for the indicator. BTC Price Since the rapid surge above $52,000, Bitcoin has calmed down slightly, as it has moved sideways in the past few days. At present, BTC is trading at around $52,500. The price of the asset seems to have slowed down in the last two days or so | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com

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Bitcoin Finds Support At $94.5K As STH Realized Prize Signals Strength

Bitcoin has faced a volatile week, with sharp moves above and below the pivotal $100,000 mark, but the price still struggles to close and hold above this psychological level. The lack of a clear direction has divided investors, with some anticipating a breakout into uncharted territory while others brace for a potential correction. Related Reading: Solana Might Reach $295 Once It Breaks Key Supply Zone Details CryptoQuant analyst Axel Adler shared key data shedding light on Bitcoin’s current dynamics. According to Adler, the nearest support level is $94,500, representing the average purchase price for short-term holders (STH) holding coins for one week to one month. This metric underscores the importance of this level as a critical threshold for maintaining market confidence. As Bitcoin grapples with resistance at $100K, the $94.5K support will be crucial in shaping the next phase of price action. A successful defense of this level could reignite bullish momentum, while a breakdown might trigger a deeper retrace. With the broader market still indecisive, Bitcoins movements in the coming days will be closely watched by traders and investors seeking clarity in an uncertain environment. The battle for $100K continues, and all eyes are on whether Bitcoin can finally claim this level as solid ground. Bitcoin Demand Remains Strong Despite significant selling pressure and choppy price action, Bitcoin demand remains robust, keeping the price above crucial demand zones. Investors appear to be holding their ground, contributing to a period of consolidation as they prepare for Bitcoins next major move. The current sideways trend reflects market indecision, yet it underscores the resilience of Bitcoin’s price in the face of volatility. Axel Adler, a prominent CryptoQuant analyst, recently shared critical insights into Bitcoin’s support levels on X. According to Adler, the nearest support level is $94,500, which represents the average purchase price for short-term holders (STH) holding coins for one week to one month. This level has become a key threshold, providing strong demand and acting as a safety net for BTC during periods of downward pressure. Further analysis reveals that $80,800 marks the average purchase price for the broader STH cohort. This level is pivotal as it represents a deeper liquidity zone that could come into play in a more significant correction. These data points suggest that $94.5K and $80.8K will be critical to monitor in the coming days and weeks. Related Reading: Cardano Follows 2020 Bullish Pattern Top Analyst Plans To Take Profits Between $4 And $6 As Bitcoin consolidates, the market anticipates whether these key support levels will hold or demand will drive BTC into its next bullish phase. The stakes are high, and investors are closely monitoring these liquidity zones. BTC Finding Fuel Below $100K  Bitcoin is trading at $98,000 after failing to sustain a breakout above the critical $100,000 level over the past week. Despite this, the price remains resilient, with bulls finding momentum to push BTC closer to reclaiming this psychological threshold. The market watches closely as Bitcoin consolidates, signaling preparation for its next significant move. Key resistance lies at $101,200, which analysts view as pivotal for triggering the next leg up. If Bitcoin successfully reclaims and holds above this zone, it could pave the way for a strong bullish surge, driving the price into uncharted territory. Such a move would likely attract renewed interest and capital, solidifying the current rally. Related Reading: PEPE Whales Increased Their Holdings By $1.4 Billion Yesterday Details However, the downside risk remains a concern. Should Bitcoin fail to break above $101,200 and lose the $94,500 support levelidentified as a critical threshold by analystsinvestors could see a correction phase unfold. This scenario would likely target deeper liquidity zones, such as $80,800, as potential support areas. Bitcoin’s ability to hold its ground and reclaim key levels will determine its direction in the coming days. Traders closely monitor price action for signs of strength or weakness amid growing market anticipation. Featured image from Dall-E, chart from TradingView

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Bitcoin MVRV Hits Critical Threshold For Profit Taking What Does This Mean?

Bitcoin recorded another remarkable price performance in the past week, gaining by 19.16% according to data from CoinMarketCap. The crypto market leader established a new all-time high at $93,434 on Wednesday, as odds of achieving a six-figure market price by years end are now higher than before.  Amidst the current market euphoria, CryptoQuant analyst Amr [...]

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Bitcoin Spot Is King STH Selling Pressure Expected To Be Absorbed By ETFs

Bitcoin has experienced a whirlwind of volatility following its recent all-time high of $93,483 set on Wednesday. Over the past few days, the price has oscillated between this record level and a low of $85,100, indicating the potential onset of a consolidation phase before the next major move. Traders and investors are now closely monitoring whether BTC will stabilize or continue its upward trajectory. Related Reading: Solana God Candle Is Close As It Breaks From Crucial Resistance Top Analyst Key data from CryptoQuant suggests that selling pressure may increase quickly, primarily driven by speculative traders looking to lock in quick profits. However, this doesn’t necessarily spell trouble for Bitcoins bullish momentum. Analysts predict that much of the selling pressure will be absorbed by the growing demand for Bitcoin ETFs, which have gained significant traction among institutional investors. This balance between short-term selling and institutional accumulation could set the stage for Bitcoins next move. With volatility expected to persist in the coming days, market participants are eagerly watching for signals that might indicate the direction of BTC’s price action. Whether this phase leads to a deeper correction or propels Bitcoin toward new highs, one thing is clearBitcoin continues to dominate the financial landscape with its dynamic performance. Bitcoin Strong Demand Supports Bullish Price Action Bitcoins price action has been impressive, surging by 38% over the past ten days. This rapid rise has caught the attention of many investors, reaffirming the growing strength of Bitcoins demand.  Key data from CryptoQuant analyst Axel Adler offers insight into the current market dynamics, highlighting that Bitcoin is trading above its short-term holder (STH) cost basis of $69,000. This level represents a crucial support threshold for those who acquired Bitcoin in the past few months, indicating solid demand above this price. Additionally, the MVRV (Market Value to Realized Value) ratio stands at 1.3, suggesting that Bitcoin is still profitable. However, Adler notes that if this ratio crosses the 1.35 mark, it could trigger selling pressure from short-term speculators looking to lock in profits. While this may prompt some market volatility, its important to note that most of these coins are expected to be absorbed by growing institutional demand, particularly through Bitcoin exchange-traded funds (ETFs). Related Reading: Cardano Skyrockets Over 40% Funding Rate Suggests Further Upside This data points to a significant shift in Bitcoins rallyrather than being fueled by speculative futures trades, the recent surge appears to be driven by strong spot demand. Spot demand typically reflects a more sustainable, stable price move than the volatility often seen in futures-driven rallies.  As Bitcoin continues to trade above key support levels, the outlook remains bullish, driven by a healthy balance between speculative trading and long-term institutional interest. BTC Technical View: Prices To Watch  Bitcoin is trading at $89,240, reflecting a 7% retrace from its recent all-time high of $93,483. The price has consolidated below this level following a period of aggressive upward momentum that propelled it into price discovery territory. This pause in the rally allows the market to stabilize and test key support levels before determining its next move. During this consolidation, the $85,000 mark has emerged as a crucial support level. If Bitcoin can hold above this level in the coming days, it may provide the foundation for another surge, potentially challenging the $90,000 resistance and retesting its all-time high. A successful reclaim of $90,000 would signal renewed bullish momentum, paving the way for further price expansion. Related Reading: Ethereum Analyst Sees Altseason Potential As BTS Is Still Outpacing ETH Time To Buy Altcoins? However, failure to maintain the $85,000 support could lead to a deeper correction. In this scenario, Bitcoin would likely seek lower-level demand, with $82,000 emerging as a significant area of interest for buyers. As the market navigates this critical phase, traders and investors will closely watch price action for signals of either a breakout or a pullback, with both scenarios carrying implications for Bitcoin’s short-term trajectory. Featured image from Dall-E, chart from TradingView

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Bitcoin Plunge Under $28,000 Only Temporary? This Metric Suggests So

Bitcoin has now plunged under the $28,000 level, but the data of an on-chain indicator may suggest that this drop could only be temporary. Bitcoin Short-Term Holder SOPR Has Dropped Just Under The 1 Level As pointed out by an analyst in a CryptoQuant post, the current values of the metric have generally served as ideal buying opportunities during rallies in the past. The relevant indicator here is the “Spent Output Profit Ratio,” which tells us whether the average Bitcoin investor is selling their coins at a profit or at a loss right now. When this indicator has a value greater than 1, it means the profits being realized in the market are currently greater than the losses. On the other hand, values below this threshold suggest a dominance of loss-taking from the holders. The SOPR being exactly equal to 1 naturally corresponds to a neutral state, where the average holder is just breaking even on their investment, as profits are equal to losses here. While the SOPR is generally defined for the entire Bitcoin market, it can also be applied to specific segments of the market. In the context of the current discussion, the “short-term holder” (STH) segment is of interest. Related Reading: Bitcoin To Drop Further? Whales Show Signs Of Dumping The STHs make up a cohort that includes all investors who have been holding onto their coins since less than 155 days ago. The STHs who manage to hold beyond this threshold enter into the “long-term holder” (LTH) group. Now, here is a chart that shows the trend in the Bitcoin STH SOPR over the last few years: The value of the metric seems to have seen some decline recently | Source: CryptoQuant As displayed in the above graph, the Bitcoin STH SOPR was below the 1 mark during last year’s bear market, suggesting that the average STH had been selling at a loss in this period. This is the typical behavior observed in bearish periods, as the constant price decline makes investors panic and sell at losses. An interesting pattern that is seen during such periods is that the line where SOPR attains a value of 1 starts providing resistance to the asset. The reason this happens is that at this level, the STHs are selling at the price they bought in. During bear markets, they usually go into losses, so whenever they find the opportunity to sell to recoup their original investment, they jump right on it. This is why the level provides resistance and forces the indicator to stay under it. Related Reading: Bitcoin Bull Run In Jeopardy As Parabolic SAR Flips Bearish On Daily Chart The opposite behavior is seen in price rallies, however, as holders start looking at the break-even level as a profitable entry point, which leads to a large amount of buying taking place at the level. This assures that the indicator quickly returns above the 1 level if it falls below it. From the chart, it’s visible that the rally this year has also seen a similar trend so far, as the Bitcoin STH SOPR has maintained above 1 (besides a temporary drop in March, which ended up resulting in a sharp surge in the price). In the last few days, the indicator has again plunged to this level of much historical significance as the price has slipped under $28,000. If the past pattern is anything to go by, a rebound could become more probable for the BTC price here. BTC Price At the time of writing, Bitcoin is trading around $27,600, down 1% in the last week. Looks like BTC has sharply dropped in value during the last few days | Source: BTCUSD on TradingView.com Featured image from iStock.com, charts from TradingView.com, CryptoQuant.com

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