BTC Price Dips: What Short-Term Holders Reveal

BTC Price Dips- Bitcoin SOPR Drops Below 1 Amid Short-Term Sell-Off

BTC Price Dips– After reaching a peak of $112,000 ten days ago, Bitcoin (BTC) encountered strong resistance and declined to around $103,000. This recent drop has impacted short-term holders’ profitability, especially those who bought above $104K, who are now facing growing unrealized losses.

At the time of writing, the Spent Output Profit Ratio (SOPR) stands at 0.99, indicating that recent buyers are closing their positions at a loss.

Short-Term Holders Driving Selling Pressure

Bitcoin’s Average Dormancy has fallen sharply to 8.5 days, signaling that younger coins are moving faster than older ones. This confirms that most selling pressure is coming from short-term holders (STHs).

Despite this, CryptoQuant analyst Frost remains optimistic. He explains:

The recent drop in STH SOPR means all available short-term profits have been absorbed. There’s no more easy profit left to take, signaling that selling pressure may be exhausted at this level.

Since STHs tend to react quickly to price moves, this could set the stage for a bullish continuation. As losses grow, selling becomes unsustainable, encouraging holders to accumulate or hold rather than sell at a loss.

Key Price Levels to Watch

The current support zone for Bitcoin (BTC) is at $104,200, with a lower boundary at $96,900. These levels represent critical short-term holder realized prices, including the 1-week to 1-month and 3-month to 6-month realized prices.

If Bitcoin remains above $104,200, a further decline is less likely as holders are incentivized to hold. Falling below this level may push Bitcoin (BTC) down toward $96,900, risking the loss of gains made in May.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.