Bitcoin Declines Slightly As Short-Term Holders Take Profits
29 October 2022 - 04:58PM
NEWSBTC
After surging to as high as $20.9k, Bitcoin has today observed a
slight decline back into the low $20k levels as a result of profit
taking from short-term holders. Bitcoin Short-Term Holder SOPR Has
Been Elevated Over The Past Two Days As pointed out by an analyst
in a CryptoQuant post, the short-term holders seem to be using the
latest price rise for profit taking. The relevant indicator here is
the “Spent Output Profit Ratio” (SOPR), which tells us whether the
average investor is selling Bitcoin at a profit or at a loss right
now. When the value of this metric is greater than 1, it means the
overall market is realizing some amount of profit currently. On the
other hand, values below the threshold suggest the holders as a
whole are selling at a loss Naturally, values of the SOPR exactly
equal to one suggest that the investors are just breaking even on
their selling at the moment. Related Reading: Why Crypto Market
Fear Mirrors Lull In Volatility Now, there is a cohort in the
Bitcoin market called the “short-term holders” (STHs), which
includes all investors who have been holding their coins since less
than 155 days ago. Here is a chart that shows the trend in the BTC
SOPR specifically for this holder group over the last couple of
weeks: The value of the metric seems to have spiked up in recent
days | Source: CryptoQuant As you can see in the above graph, the
Bitcoin STH SOPR has been elevated above the 1 level during the
last two days or so. This rise has coincided with the BTC price
finally surging up after moving sideways around $19k for a long
while. This suggests that these investors are using this
opportunity to harvest some profits. Related Reading: The Inverted
Bitcoin Chart Bears Don’t Wanna See | BTCUSD Analysis October 27,
2022 Such profit-taking is generally bearish for the price of the
crypto, and as the chart displays, there were three instances of
this kind of trend during the past two weeks. All of those profit
realization sprees from the STHs resulted in the price going back
down after a short-term rise. This time as well the BTC price has
gone down from its high of $20.9k to as low as below $20.1k. before
retracing back up some to the current level. BTC Price At the time
of writing, Bitcoin’s price floats around $20.5k, up 8% in the last
seven days. Over the past month, the crypto has gained 7% in value.
Below is a chart that shows the trend in the price of the coin over
the last five days. Looks like the value of the crypto has gone
down over the last couple of days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com,
CryptoQuant.com
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