Bitcoin's short-term holders are on the brink of a market sentiment shift. Glassnode data indicates testing of the breakeven level at 1.0 with the SOPR metric.
SOPR Breakeven Level Testing
According to Glassnode, Bitcoin's Short-Term Holder Spent Output Profit Ratio (STH-SOPR) is at a critical point of 1.0. Historically, breaking above this level often leads to a market sentiment shift. However, failing to surpass this mark has usually been accompanied by increased selling pressure.
Significance of Exceeding 1.0 Level
STH-SOPR gauges the profitability of short-term BTC holders who have kept their coins for less than 155 days. Exceeding 1.0 indicates that holders are selling at a profit, while a value below indicates losses.
Market Impact and Predictions
Short-term holders react quickly to market changes. Surpassing the 1.0 level can point to Bitcoin's market strengthening. If the metric remains below 1.0, it might indicate potential declines and corrections.
If the STH-SOPR stays above 1.0, it may signal continued growth. Otherwise, it could lead to increased selling pressure, causing a correction.
