Bitcoin Faces Critical Support Amid Long-Term Holder Selling Pressure—Analyst
The Bitcoin (BTC) market is currently experiencing a major shift in supply dynamics, with significant activity between long-term holders (LTH) and short-term holders (STH).
According to the latest news analyze CryptoQuant said that historically, such shifts have often heralded local market tops or even cycle peaks, depending on the overall market environment and broader economic conditions.
For now, demand from short-term holders continues to play a key role. Support the price of Bitcoin Maintain stability amid continued market volatility.
Long Term Holders vs. Long Term Holders Short Term Buyers
Analysis by CryptoQuant analyst Darkfost shows that short-term holders, especially those who have purchased Bitcoin in recent months, are actively influencing market sentiment.
By analyzing realized price data for various short-term acquisition periods, different support and resistance levels become apparent.
These realized price levels include a general average realized price of $41,000, $85,000 overall for short-term holders, $99,000 for holders between one week and one month, $81,000 for holders between one and three months, and $81,000 for holders between three and six months. or US$60,000.
Darkfost said the numbers reflect key psychological and technical price points at which market participants may make significant buy or sell decisions.
The analyst revealed that the Short-term Holder Spending Output Profit Ratio (STH SOPR) currently remains at a neutral level of 1, after Bitcoin’s last rally pushed its price to An all-time high of $108,000. STH SOPR is a key indicator for assessing the profit-taking behavior of short-term holders.
Neutral SOPR indicates recent sales activity Short-term holders’ investments are not generating significant profits, which reduces the incentive for a broad sell-off at current price levels.
However, this neutral stance suggests that an immediate bullish recovery may face headwinds. Decline in STH SOPR points to lower realized profits, which could slow down upward motivation In the short term.
Despite these challenges, demand from short-term holders managed to absorb much of the selling pressure from long-term holders, preventing a significant price drop. Duck Foster wrote:
All in all, the selling pressure on LTH has been well absorbed by the buying pressure on STH so far. However, we note that the STH SOPR is declining, which may hinder an immediate bullish recovery. In the short term, there may be a period of consolidation or even a deeper adjustment.
Bitcoin market performance and outlook
Meanwhile, Bitcoin is currently trading at $97,357 after edging up 1.1% over the past day.
While this rally has helped Bitcoin regain positive momentum in recent weeks, it hasn’t been enough to push the cryptocurrency back on track. Six-digit price tag or over $108,000, a new all-time high.
Featured image created using DALL-E, chart from TradingView
