The analysis of the current Bitcoin market situation indicates that the asset shows signs of correction due to decreased demand and profit-taking among investors.
STH-SOPR Indicators
According to Glassnode data, the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) for Bitcoin remains below levels that have historically indicated local tops. Analysts at Swissblock highlight that this metric is holding within a 'healthy reset' range, reflecting reduced profit-taking pressure among recent buyers.
Short-Term Holder Trading Activity
TradingView data shows Bitcoin consolidating at around $113,700 after a week-long sequence of lower highs and lower lows. The short-term SOPR stands at 0.34, indicating that the majority of recent transactions are taking place at a loss. In previous cycles, this has often signaled capitulation among weak hands, paving the way for stronger buyers to step in.
Support and Resistance Levels
Bitcoin faces immediate resistance around $116,000, where previous rallies have stalled in recent sessions. A decisive close above this level could reignite bullish momentum toward $120,000. Conversely, failure to maintain support near $113,000 may open the door to a deeper pullback toward $110,000, where stronger demand is expected.
Thus, the current technical and on-chain picture points to consolidation rather than capitulation. If macroeconomic conditions remain favorable, there is a chance for accumulation to resume.
