While the Bitcoin price has struggled to break out of its current choppy state, its sustained hold above the psychological $110,000 level displays the current resolution of investors. The latest on-chain data suggests that the market might have absorbed excess selling pressure and could be regaining momentum.
This on-chain observation is based on the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) metric, which assesses the profitability ratio of spent outputs (held for more than 1 hour but less than 155 days). This indicator provides insight into whether STHs are selling at a profit or at a loss.
Frank shared that the Bitcoin STH-SOPR metric has returned above the critical 1 threshold level for the first time in 20 days. This means that the short-term investors, who were busy selling at a loss the past three weeks, are now back realizing profits.
However, the pertinent question remains whether the past 20 days were enough to shake out the weak hands for the next leg up. Frank noted that the market could want to inflict more pain on the short-term holder cohort before the next move higher. Hence, investors might want to exercise caution before making a decision, as the market seems to be at a critical juncture.
As of this writing, the price of BTC stands around $110,200, reflecting no significant movement in the past 24 hours. According to CoinGecko, the market leader is up by nearly 2% in the last seven days.
