Short-Term Investors' Impact on Bitcoin Correction

When examining the recent 10% correction in Bitcoin, focus is put on whether this correction has concluded. A CryptoQuant analyst studied the sentiment among short-term investors holding Bitcoins for less than 155 days to assess the status of this correction.

The analyst emphasized the influence of short-term investors on the market, noting that they are swiftly influenced by sudden market changes, prompting immediate actions.

To determine if the Bitcoin correction has ended, the analyst mentioned using measurements such as Short-Term Holder SOPR and Net Profit Loss. Short-Term Holder SOPR values above 1 indicate profit-taking, while values below 1 indicate loss. Additionally, Net Profit Loss on BTC Sent by Short-Term Investors to Exchanges was assessed.

These indicators currently suggest the correction has concluded, although uncertainties remain due to potential unexpected events like a black swan event, US government actions, or negative news impacting Bitcoin, including Mt. Gox selling Bitcoin, that could trigger a BTC decline.

1. The recent Short-Term Holder SOPR values below 1 indicate that short-term investors were selling Bitcoins at a loss, with the values now starting to move above 1. This shift suggests reduced selling pressure on Bitcoin.

2. The Net Profit Loss on BTC Sent by Short-Term Investors to Exchanges confirms that short-term investors have ceased losses on BTC transfers to exchanges.

These readings imply decreasing selling pressure, signaling that after selling from weak hands, the market is anticipating the next moves.

While the speculative future events could alter the current situation, if unexpected negative occurrences are avoided, the end of the correction appears imminent. It is essential to note that this information does not constitute investment advice, and past Bitcoin performance is not a guarantee of future outcomes.