PiCK
[Analysis] "Bitcoin Indicator Suggests Price Correction…Potential for Significant Drop"
- It was reported that the movement of Bitcoin supply from long-term holders to short-term holders suggests a price correction.
- It was stated that the SOPR ratio for short-term holders remains neutral, making it difficult to gain profits.
- The decline in SOPR for short-term holders indicates that the price correction period could be prolonged or there could be a more significant drop.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
An analysis has emerged suggesting that the chart of long-term and short-term investor supply holdings for Bitcoin (BTC) indicates a price correction.
On the 3rd, on-chain data analysis platform CryptoQuant stated, "Currently, the chart shows that Bitcoin supply is moving from long-term holders to short-term holders," adding, "The demand from short-term holders is supporting Bitcoin's price."
Furthermore, it explained, "The current SOPR (Spent Output Profit Ratio) for short-term holders remains neutral at 1. This means that it has become difficult for short-term holders to gain further profits by selling Bitcoin."
It continued, "So far, the selling pressure from long-term holders has been well absorbed by the buying pressure from short-term holders," adding, "However, as the SOPR for short-term holders is declining, there could be a prolonged price correction period or a more significant drop in the short term."
Meanwhile, Bitcoin is trading at around $97,900, up 0.7% from the previous day, in the Binance Tether (USDT) market.