Bitcoin (BTC) has experienced a “complete reset” of sell pressure after falling below $90,000, according to recent research.
Key points:
Long-term Bitcoin holders have adjusted their selling strategies as BTC price movements dip below $90,000.
A derivative of the widely used SOPR metric is now at its lowest point since early 2024.
Recent price fluctuations have prompted typical knee-jerk trading actions by short-term holders.
Bitcoin SOPR “Ratio” reaches significant 1.35 level
In a recent “Quicktake” blog entry on Saturday, on-chain analytics platform CryptoQuant highlighted two-year lows in a vital Bitcoin holding metric.
Long-term holders (LTHs) have virtually ceased selling their BTC after the BTC/USD rate dropped to its lowest point since April.
CryptoQuant identifies a significant change in the profitability of unspent transaction outputs (UTXOs) between the LTH cohort and their speculative counterparts, short-term holders (STHs).
The terms “LTH” and “STH” denote wallets holding BTC for more or less than 155 days, respectively.
By utilizing a version of the Spent Output Profit Ratio (SOPR), which gauges the proportion of UTXOs that are in profit or loss, CryptoQuant confirms that it is now the STHs who are executing the majority of profitable transactions.
“The Bitcoin SOPR Ratio (LTH-SOPR / STH-SOPR) has fallen to 1.35, indicating its lowest level since the start of 2024. This drop aligns with Bitcoin’s price correction to the $89.7K mark,” contributor CryptoOnchain remarked.
CryptoOnchain derived two primary conclusions from the SOPR data: the “end of substantial distribution” by LTHs and a “market cool-down” underway instead.
“This drop indicates a massive ‘reset’ in the market,” the post added.
“The speculative excess that pushed the ratio to highs earlier in the cycle has been eliminated.”
Speculators baffled by BTC price movements
Bitcoin speculators have responded erratically to the recent BTC price changes, as illustrated by their overall exposure.
Related: Ether vs. Bitcoin teases 170% gains as ETH price breaks 5-month downtrend
The STH cohort’s net position change on a rolling 30-day basis showed a significant upward spike on Nov. 24, according to CryptoQuant.
This 30-day rolling total turned negative on Dec. 1, as BTC/USD experienced another downturn around the beginning of December.
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 provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should carry out their own research prior to making any decisions. While we strive for accuracy and promptness in our information, Cointelegraph does not assure the accuracy, completeness, or reliability of any content in this article. This article may include forward-looking statements that are exposed to risks and uncertainties. Cointelegraph will not be held responsible for any loss or damage resulting from reliance on this information.
