Bitcoin’s price has been pretty resilient lately, especially considering the bearish pressure it faced last week. A slight dip happened after some disappointing US jobs data, but Bitcoin’s staying above $26,000 shows investors are holding on. New data suggests the market might be shaking off some selling pressure and getting ready to move.
Is Bitcoin Ready to Climb?
A crypto analyst, “Frank,” noticed something interesting: short-term Bitcoin holders (those holding for less than 155 days) are starting to see some profits. This is based on the STH-SOPR metric, which tracks whether these holders are selling at a profit or a loss.
- STH-SOPR > 1: Short-term holders are selling at a profit.
- STH-SOPR < 1: Short-term holders are selling at a loss (capitulating).
The STH-SOPR has just gone above 1 for the first time in 20 days. This means short-term holders, who were selling at a loss for three weeks, are now making money. Usually, when the STH-SOPR is below 1, weaker investors leave the market, letting long-term holders buy up more. Going above 1 might signal the end of this period, with a price increase possibly on the way.
More Pain Ahead?
But will this be enough to clear out the weak hands? Frank thinks the market might want to squeeze short-term holders a bit more before a significant price increase. So, it’s probably wise to be cautious before making any big investment decisions. The market seems to be at a turning point.
Bitcoin Price Check
At the time of writing, Bitcoin is trading around $26,000, with little change in the last 24 hours. It’s up about 2% over the past week.
