Bitcoin (BTC) continues to show signs of sustained growth, according to a recent analysis by cryptocurrency analytics firm CryptoQuant. The firm’s Short-Term Owner Spent Output Profit Ratio (STH SOPR) analysis suggests that Bitcoin’s price still has room to rise before reaching a potential market top.
STH SOPR, a key metric for assessing market sentiment among short-term Bitcoin holders, remains in a mid-range, far from the Extreme Greed zone, suggesting that the market is in a phase of controlled optimism, with short-term holders making modest profits rather than indulging in speculative frenzy.
CryptoQuant’s analysis of SOPR’s 30-day moving average (30d MA) supports this view. Historically, when SOPR enters the Extreme Greed range, the market often encounters resistance, leading to significant corrections. Conversely, Extreme Fear zones typically signal accumulation phases and market bottoms.
According to analysts, the current behavior of SOPR points to a period of healthy growth where investors are cautiously adjusting their positions as Bitcoin’s price rises. This interim phase reflects a market in transition rather than a market on the verge of exhaustion, CryptoQuant noted.
“This intermediate position may reflect a market in transition, where investors continue to adjust their positions as Bitcoin price moves forward,” the report said.
While analysis suggests that Bitcoin has yet to reach a top, CryptoQuant warned that monitoring SOPR will be crucial in the coming weeks. A rapid move into the Extreme Greed range could indicate increased profit-taking and potentially signal a trend reversal.
*This is not investment advice.