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Bitcoin Declines Slightly As Short-Term Holders Take Profits

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After surging to $20.9k, Bitcoin fell slightly to the low $29k range as a result of profit-taking from short-term holders.

SOPR for short-term bitcoin holders has risen in the last two days

As a CryptoQuant analyst pointed out Positionshort-term holders appear to be taking advantage of recent price increases for profit taking.

Here the relevant metric is “Profit ratio of consumption production(SOPR) shows whether the average investor is currently selling Bitcoin at a profit or at a loss.

If the value of this metric is greater than 1, it means that the market as a whole is currently realizing some profit. On the other hand, values ​​below the threshold suggest that all holders are selling at a loss.

Not surprisingly, a SOPR value exactly equal to 1 indicates that the investor is currently selling.

Currently, the Bitcoin market hasshort term holder(STH) includes all investors holding the coin within 155 days.

Here is a chart showing the trend of the BTC SOPR over the last few weeks, dedicated to this group of holders.

The value of the metric seems to have spiked up in recent days | Source: CryptoQuant

As you can see from the graph above, Bitcoin STH SOPR has crossed the 1 level for the past two days or so.

This rally coincides with BTC’s price leveling off around $19,000 for a long time before finally making a sharp rally. This suggests that these investors are taking advantage of this opportunity to make a profit.

Such profit taking is generally bearish on cryptocurrency prices, and as the chart shows, there have been three instances of this kind of trend over the past two weeks. All these gain realizations from STH resulted in a short-term rise followed by a fall in price.

This time, the BTC price also dropped from a high of $20.9K to a low of $20.1K. before returning some to their current level.

BTC Price

At the time of writing, Bitcoin price It’s up 8% over the last 7 days, with a move of around $20.5k. Over the past month, the cryptocurrency has gained 7% in value.

Below is a chart showing the price trend of the coin over the last 5 days.

bitcoin price chart

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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