Is Bitcoin’s price action at risk? Here’s why traders should watch out!

Bitcoin’s short-term price outlook is encountering a potential challenge, with the Short-Term Holder Spent Output Profit Ratio (STH SOPR) showing signs of decline. A falling STH SOPR typically indicates that short-term holders are either taking profits or realizing losses – often a sign of slowdown in bullish momentum.

For Bitcoin, this shift in market behavior could point to a phase of consolidation, or in a more negative scenario, a deeper price correction. As the market reacts, investors are closely watching how this development may influence Bitcoin’s near-term trajectory.

At the time of writing, Bitcoin’s STH SOPR was hovering around 1 – reflecting a balance between profits and losses for short-term holders. This marks a shift from the recent euphoria during the $108k rally, with neutral SOPR levels often signaling consolidation or correction phases.

Additionally, the redistribution of Bitcoin between Long-Term and Short-Term Holders is underway, a typical occurrence at local market tops. If the STH SOPR continues to decline, we may see selling pressure intensify, especially around the realized price levels near $85k and $99k.

Bitcoin’s STH SOPR trends pointed to a critical juncture for market sentiment. Investors should monitor key support at $85k and resistance at $99k as signals for the next move. A break below $85k could invite further selling pressure, while reclaiming $99k may trigger renewed bullish momentum.

Given the ongoing consolidation phase, cautious accumulation could be viable, but traders should be prepared for potential volatility.

Source: ambcrypto.com

Is Bitcoin’s price action at risk? Here’s why traders should watch out!

Bitcoin’s short-term price outlook is encountering a potential challenge, with the Short-Term Holder Spent Output Profit Ratio (STH SOPR) showing signs of decline. A falling STH SOPR typically indicates that short-term holders are either taking profits or realizing losses – often a sign of slowdown in bullish momentum.

For Bitcoin, this shift in market behavior could point to a phase of consolidation, or in a more negative scenario, a deeper price correction. As the market reacts, investors are closely watching how this development may influence Bitcoin’s near-term trajectory.

At the time of writing, Bitcoin’s STH SOPR was hovering around 1 – reflecting a balance between profits and losses for short-term holders. This marks a shift from the recent euphoria during the $108k rally, with neutral SOPR levels often signaling consolidation or correction phases.

Additionally, the redistribution of Bitcoin between Long-Term and Short-Term Holders is underway, a typical occurrence at local market tops. If the STH SOPR continues to decline, we may see selling pressure intensify, especially around the realized price levels near $85k and $99k.

Bitcoin’s STH SOPR trends pointed to a critical juncture for market sentiment. Investors should monitor key support at $85k and resistance at $99k as signals for the next move. A break below $85k could invite further selling pressure, while reclaiming $99k may trigger renewed bullish momentum.

Given the ongoing consolidation phase, cautious accumulation could be viable, but traders should be prepared for potential volatility.

Source: ambcrypto.com