Bitcoin
Is Bitcoin’s price action at risk? Here’s why traders should watch out!
Bitcoin’s price may face consolidation or deeper correction due to the declining STH SOPR – A sign of investor hesitancy.
- Bitcoin’s STH SOPR decline pointed to a potential slowdown in bullish momentum and price correction
- Watch for key support at $85k and resistance at $99k to gauge Bitcoin’s next move
Bitcoin’s [BTC] short-term price outlook is encountering a potential challenge now, with the Short-Term Holder Spent Output Profit Ratio (STH SOPR) showing signs of decline. A falling STH SOPR typically indicates that short-term holders are either taking profits or realizing losses – Often a sign of slowdown in bullish momentum.
For Bitcoin, this shift in market behavior could point to a phase of consolidation, or in a more negative scenario, a deeper price correction. As the market reacts, investors are closely watching how this development may influence Bitcoin’s near-term trajectory.
Trends in STH SOPR and market dynamics
Source: Cryptoquant
At the time of writing, Bitcoin’s STH SOPR was hovering around 1 – Reflecting a balance between profits and losses for short-term holders. This marks a shift from the recent euphoria during the $108k rally, with neutral SOPR levels often signaling consolidation or correction phases.
Additionally, the redistribution of Bitcoin between Long-Term and Short-Term Holders is underway, a typical occurrence at local market tops. If the STH SOPR continues to decline, we may see selling pressure intensify, especially around the realized price levels near $85k and $99k.
Bitcoin: Supply dynamics and market behavior
Source: Cryptoquant
The dynamics between Long-Term and Short-Term Holders play a pivotal role in shaping Bitcoin’s price trends. Spikes in STH supply are often linked to market tops, contributing to heightened volatility.
The recent neutral stance of the STH SOPR pointed to selling pressure at breakeven levels – Contributing to investor hesitancy. Resistance around the $85k–$99k range further suggested that consolidation or cautious accumulation may be likely, with potential for greater short-term volatility.
Read Bitcoin’s [BTC] Price Prediction 2025-26
The way forward
Source: TradingView
Bitcoin’s STH SOPR trends pointed to a critical juncture for market sentiment. Investors should monitor key support at $85k and resistance at $99k as signals for the next move.
A break below $85k could invite further selling pressure, while reclaiming $99k may trigger renewed bullish momentum. Given the ongoing consolidation phase, cautious accumulation could be viable, but traders should be prepared for potential volatility.
