Bitcoin Short-Term Holder Profit Taking Reaches Levels Not Seen Since Nov. 2021
02 Febrero 2023 - 08:00AM
NEWSBTC
On-chain data shows the Bitcoin short-term holder profit-taking has
reached high levels not seen since the November of 2021. Bitcoin
Short-Term Holder SOPR Has Shot Up Recently As pointed out by an
analyst in a CryptoQuant post, a near-term top usually becomes more
probable when this trend forms for BTC. The relevant indicator here
is the “Spent Output Profit Ratio” (SOPR), which tells us whether
the average Bitcoin investor is selling at a loss or at a profit
right now. When the value of this metric is greater than 1, it
means the holders as a whole are realizing some profit on their
selling currently. On the other hand, values below the threshold
suggest the overall market is selling at some loss at the moment.
Naturally, the indicator having a value exactly equal to 1 would
suggest the average investor is just breaking even right now as the
total amount of profits being realized in the market is equal to
the losses currently. The SOPR here covers the entire market, but
the metric can also be modified to cover only certain segments of
the market. One major part of the sector is made up of the
“short-term holders” (STH) which is a cohort that includes all
investors that acquired their coins within the last 155 days. Now,
here is a chart that shows the trend in the 30-day moving average
(MA) Bitcoin SOPR specifically for these STHs over the last several
years: The 30-day MA value of the metric seems to have seen some
rise in recent days | Source: CryptoQuant As displayed in the above
graph, the 30-day MA Bitcoin STH SOPR had been below a value of 1
throughout the 2022 bear market, implying that these investors had
been selling at a loss during this period. Related Reading:
Stablecoin Supply Approaches Death Cross, Bad News For Bitcoin? The
quant has also marked previous instances of such a trend with the
green boxes in the BTC price chart. It looks like this trend was
also observed during bearish periods of the past cycles. Recently,
with the latest rally, the metric has sharply climbed and broken
out of this zone, as its value is above 1 now. This suggests that
there is more profit harvesting happening from this cohort than
loss realization currently. This makes sense as prices right now
are significantly higher than they were during the last 155 days
window, which is when the STHs would have bought their coins, so
these holders must be in some decent profits currently. As the
rally has continued, the STHs seem to have rapidly ramped up their
profit-taking as well, since the SOPR indicator for them has also
continued to shoot up. The level of their profit realization is now
comparable to that seen in November 2021, when Bitcoin set its
all-time high. Related Reading: FED To Put Off Interest Rate Hikes,
Bitcoin Rallies: Here’s Why As for what this current profit-taking
may imply for BTC, the analyst explains, “when retail starts to get
euphoric, the probability of a near-term price top starts to
increase.” BTC Price At the time of writing, Bitcoin is trading
around $23,800, up 3% in the last week. Looks like BTC has risen in
the past day | Source: BTCUSD on TradingView Featured image from
Kanchanara on Unsplash.com, charts from TradingView.com,
CryptoQuant.com
Quant (COIN:QNTUSD)
Gráfica de Acción Histórica
De Nov 2023 a Dic 2023
Quant (COIN:QNTUSD)
Gráfica de Acción Histórica
De Dic 2022 a Dic 2023