According to data from CryptoQuant, the Bitcoin price has been fluctuating in a narrow range between $25,800 and $26,000 for the last 24 hours. The leading cryptocurrency's lackluster performance was reflected by a market indicator that measures the profitability of short-term holders.
Bitcoin Moves in a Narrow Band
Short-Term Holder Spent Output Profit Ratio (STH-SOPR) is an on-chain metric that tracks the ratio of the price sold to the price paid for Bitcoin transactions with coins held for less than 155 days.
A value above 1 means short holders are selling at a profit, while a value below 1 means they are selling at a loss.
According to CryptoQuant Analyst Adam Mourad, STH-SOPR has fallen from 1 to 0.9809 over the past two weeks after the price of bitcoin fell from $30,000 to below $26,000.
This suggests that many short-term investors panicked and sold their Bitcoin, contributing to the downward pressure on the price.
This behavior could lead to a self-reinforcing cycle of price declines,” the analyst said.
The analyst also stated that STH-SOPR generally remained stable at 1 level. “This development shows that short-term holders are selling their Bitcoin at a price that allows them to exit without making a profit or loss, that is, at breakeven,” the analyst added.
Looking at the Bitcoin chart, the important support level is $25150. In particular, breaking this level may further increase the downward pressure.
As a resistance point, $26350 is important at this stage.
*This is not investment advice.
