
Bitcoin STH Capitulation Signal Emerges – Historical Rallies Followed This Setup
The cryptocurrency market is showing renewed strength as Bitcoin approaches key resistance levels. Despite weeks of choppy price action and uncertainty, momentum is building across the sector. Traders and analysts are closely monitoring Bitcoin’s next move, with many anticipating a potential breakout above the all-time high.
In recent developments, a critical on-chain signal has emerged that aligns with historical patterns. According to top analyst Darkfost, the short-term holder (STH) realized price ratio recently dropped below 0.995. This level typically signals STHs are capitulating and selling at a loss, often preceding strong recoveries and upward trends.
Historically, this type of setup has preceded significant rallies in Bitcoin. In the past, when STH SOPR has dropped below 0.99%1, historical data reveals that it often precedes a robust recovery.
Source: bitcoinist.com