Bitcoin (BTC) has experienced a “complete reset” of selling pressure after falling below $90,000, according to new research.
Key points:
Long-term Bitcoin holders have altered their selling strategies as BTC price returns below $90,000.
A derivative of the well-known SOPR metric is now registering its lowest levels since early 2024.
Recent price fluctuations have led to some typical knee-jerk trading actions by short-term holders.
Bitcoin SOPR “Ratio” reaches critical 1.35 level
In a recent “Quicktake” blog post on Saturday, on-chain analytics platform CryptoQuant noted two-year lows in a significant Bitcoin hodl metric.
Long-term Bitcoin holders (STHs) have effectively ceased selling their BTC after BTC/USD dropped to its lowest levels since April.
CryptoQuant highlights a significant shift in the profitability of unspent transaction outputs (UTXOs) among the long-term holder cohort compared to their speculative counterparts, short-term holders (STHs).
The terms “LTH” and “STH” refer to wallets holding a certain amount of BTC for more or less than 155 days, respectively.
Using a version of the Spent Output Profit Ratio (SOPR) metric, which tracks the proportion of UTXOs in profit and loss, CryptoQuant confirms that it is now the STHs driving the majority of in-profit transactions.
“The Bitcoin SOPR Ratio (LTH-SOPR / STH-SOPR) has decreased to 1.35, reaching its lowest point since early 2024. This drop aligns with Bitcoin’s price correction to the $89.7K mark,” summarized contributor CryptoOnchain.
CryptoOnchain deduced two main conclusions from the SOPR data: the “end of intense distribution” by LTHs and a “market cool-down” taking effect instead.
“The decline implies a substantial ‘reset’ in the market,” the post stated.
“The speculative excess that elevated the ratio to highs earlier in the cycle has been eradicated.”
Speculators puzzled by BTC price changes
Bitcoin speculators have reacted inconsistently to recent BTC price movements, as observed through their overall exposure.
Related: Ether vs. Bitcoin hints at 170% gains as ETH price breaks 5-month downtrend
The net position change of the STH cohort on a rolling 30-day basis experienced a significant upward spike on Nov. 24, according to CryptoQuant.
The 30-day rolling total then turned negative on Dec. 1, coinciding with another BTC/USD drawdown around the December monthly opening.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
