Bitcoin reaches a critical point as the STH-SOPR indicator hovers near a neutral level of 1.0. The market situation remains ambiguous.
Current State of the Bitcoin Market
According to CryptoQuant's latest analysis, the SOPR value remained below 1 in early 2023, indicating widespread losses among short-term sellers. However, by early 2024, the indicator consistently exceeded 1, hitting highs of 1.2, reflecting a wave of profit-taking as Bitcoin rose past $70,000.
The market is once again at a crossroads. A steady move above 1 suggests that short-term holders are selling at a profit, which could pave the way for a rise towards $120,000 to $130,000.
Speculation vs. Real Demand
On one side, speculative activity has surged to near-record levels, with Open Interest across exchanges climbing above $40 billion, approaching all-time highs. Positive funding rates indicate a strong long bias, as whales and short-term traders aggressively bet on continued growth.
Conversely, long-term support continues to strengthen, as institutional demand quietly accumulates more than 1.3 million BTC, thereby anchoring the long-term trajectory.
Predictions and Possible Scenarios
The current situation shows that the Bitcoin market remains layered with two directions: speculative leverage dictates short-term volatility, while institutional demand indicates long-term direction. The lack of extreme profit-taking or loss-cutting highlights the current market balance.
The findings of the current Bitcoin market scenario underline the need for vigilant monitoring of key changes that could impact future price movements.
