Bitcoin’s Short-Term Holder Spent Output Profit Ratio is testing an important breakeven level. As per the data from Glassnode, the Short-Term Holder SOPR of Bitcoin is currently testing the breakeven spot of 1.0, indicating a potential shift in the overall market momentum. The blockchain analytics platform took to social media to discuss the current position of Bitcoin STH-SOPR.
STH-SOPR of Bitcoin Reaches Breakeven Testing Point of 1.0
Glassnode’s data points out that the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) currently stands at a notable position. Hence, this ratio is going to test a critical breakeven point of 1.0. Based on the historical data, breaking above the respective level has often led to a shift in the wider market momentum. Nonetheless, the unsuccessful attempt to surpass this level has often paved the way for a resurge in selling pressure.
The STH-SOPR works as a key metric to analyze the short-term $BTC holders’ profitability. This category includes the holders having kept their $BTC coins for under 155 days. The respective metric gauges the ratio existing between two price levels. These levels include the price at the time of the coins’ spending and the price level at the initial acquisition. In this respect, a value exceeding 1.0 indicates that short-term $BTC holders are offloading at a profit. On the other hand, a value lower than 1.0 suggests that the holders are incurring significant losses.
Breaking above 1.0 Highlights Potential Upward Trajectory for Bitcoin
This metric specifically plays a crucial role in comprehending the dynamics dealing with $BTC supply and market sentiment. In line with the market data, short-term holders mostly react quickly against the market movements. Thus, when the STH-SOPR value stays above the 1.0 spot, it highlights the increasing confidence among the short-term holders. Such a development often leads to a continuous price appreciation. However, a failure in this attempt can push toward more sell-offs while holders endeavor to decrease their losses.
According to Glassnode, the short-term $BTC holders can influence the broader market trajectory of Bitcoin. Keeping this in view, if the STH-SOPR regains 1.0 and maintains its position above this level, Bitcoin could witness a renewed upward momentum. Nevertheless, remaining below the above-mentioned level could suggest more downside pressure, likely leading to a comprehensive correction.
