Bitcoin (BTC) has seen a “complete reset” of sell pressure after dropping below $90,000, says new research.
Key points:
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Bitcoin long-term holders have reset their selling habits as BTC price action returns below $90,000.
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A derivative of the popular SOPR metric is now tapping its lowest levels since early 2024.
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Recent price moves have resulted in some classic knee-jerk trading decisions by short-term holders.
Bitcoin SOPR “Ratio” hits key 1.35 level
In one of its “Quicktake” blog posts Saturday, onchain analytics platform CryptoQuant eyed two-year lows in a key Bitcoin hodl metric.
Bitcoin long-term holders (STHs) have effectively abandoned their BTC sales after BTC/USD fell to its lowest levels since April.
CryptoQuant reveals a major shift in the profitability of unspent transaction outputs (UTXOs) created by the LTH cohort versus their speculative counterparts, short-term holders (STHs).
The labels “LTH” and “STH” refer to wallets hodling a given amount of BTC for more than or less than 155 days, respectively.
Using an iteration of the Spent Output Profit Ratio (SOPR) metric, which measures the proportion of UTXOs in profit and loss, CryptoQuant confirms that it is now STHs responsible for the majority of in-profit transactions.
“The Bitcoin SOPR Ratio (LTH-SOPR / STH-SOPR) has dropped to 1.35, marking its lowest level since the beginning of 2024. This decline coincides with Bitcoin’s price correction to the $89.7K level,” contributor CryptoOnchain summarized.
Bitcoin LTH-SOPR/STH-SOPR (14-period simple moving average). Source: CryptoQuantCryptoOnchain drew two key conclusions from the SOPR data: the “end of heavy distribution” by LTHs and a “market cool-down” taking effect instead.
“The drop suggests a massive ‘reset’ in the market,” the post continued.
Speculators confused by BTC price moves
Bitcoin speculators have reacted erratically to recent BTC price action, as seen through the lens of their overall exposure.
Related: Ether vs. Bitcoin teases 170% gains as ETH price breaks 5-month downtrend
The net position change of the STH cohort on a rolling 30-day basis saw a large upward spike on Nov. 24, CryptoQuant shows.
The 30-day rolling tally then flipped negative on Dec. 1, as BTC/USD saw another drawdown around the December monthly open.
Bitcoin STH 30-day rolling net position change. Source: CryptoQuantThis 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.
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