like Bitcoin price As volatility continues, several important metrics may be essential in determining the next trend for digital assets so that cryptocurrency enthusiasts and investors can position themselves for notable market shifts in the coming days.
On-chain data reveals that Bitcoin’s momentum is under threat
said Kyle Dobbs, technical analyst and host of Crypto Banter Insights offered About the next possible path for Bitcoin, using the measure of the proportion of output profits spent by shareholders in the short term (SOPR). Specifically, the STH-SOPR is a measure used to evaluate the actions of short-term investors, and takes into account only the outputs spent within the last 155 days. Simply put, it is a leading on-chain indicator that shows whether Bitcoin is being sold for a profit or a loss.
According to the analyst, although Bitcoin is slowly approaching the $100,000 price level, this key metric on the 30-day time frame has maintained an average of 1.02, indicating the possibility of taking profits by… Short term investors A decline may be on the horizon.
In the past, this trend has signaled an opportunity for new investors to buy Bitcoin at better prices in the event of a correction. He added: “The opportunity may be just around the corner.”
Bitcoin’s ability to correct prices is also indicated by the current negative behavior among long-term Bitcoin holders, as they have offloaded their holdings on a massive scale. Data Kyle Dobbs’ report revealed that long-term Bitcoin holders have sold more than 128,000 Bitcoin since October, indicating a potential shift in market dynamics.
This development indicates that these investors are opting to take profits after the recent rallies that pushed Bitcoin closer to the price Price tag is $100,000. It also represents a critical phase in the market cycle that can lead to higher volatility as selling pressure continues.
Although there was widespread selling by long-term shareholders, i.e. investors in the United States Bitcoin spot trading funds (ETFs) Absorb about 90% of selling pressure. This strong institutional demand is driving the upside for BTC, pushing its value towards the $100,000 level, a key level that could change the overall cryptocurrency market dynamics.
BTC bearish performance building
After hitting a high of $99,500 over the weekend, Bitcoin’s bullish momentum has slowed, leading to a decline closer to the $92,000 level. This latest decline comes in the middle of… Expected price correctionsWhich raised speculation about the continued decline.
Profit taking was considered the main reason for the decline in prices, as many indicators showed that retail investors may gradually sell their properties.
last day, Bitcoin It fell more than 6%, to $92,320, showing signs of further losses. Despite this decline, positive investor sentiment remains strong as evidenced by trading volume rising by more than 54% over the past 24 hours.
Featured image from Unsplash, chart from Tradingview.com
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