As Bitcoin’s price continues to fluctuate, several important metrics might be essential in determining the digital asset’s next direction so that crypto enthusiasts and investors can position themselves for notable market shifts in the upcoming days.

On-chain Data Reveals Bitcoin’s Momentum Under Threat

Kyle Doops, a technical analyst and host of the Crypto Banter show, has offered insights about Bitcoin’s next potential trajectory, utilizing the Short-Term Holder Spent Output Profit Ratio (SOPR) metric. Specifically, the STH-SOPR is a measure used to evaluate the actions of short-term investors, and it only considers outputs that have been spent within the last 155 days. Simply put, it is a key on-chain indicator that shows whether BTC is being sold for a profit or a loss.

According to the analyst, despite Bitcoin slowly approaching the $100,000 price level, this key metric on the 30-day time frame has maintained an average of 1.02, which suggests possible profit-taking by short-term investors and a pullback might be on the horizon.

In the past, this trend has signaled an opportunity for new investors to purchase BTC at better prices should a correction occur. “Opportunity might be just around the corner,” he added.

Bitcoin’s potential for a price correction is further indicated by current negative behavior among long-term Bitcoin holders, as they have been offloading their holdings on a huge scale. Data from Kyle Doops’ report revealed

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Author: Godspower Owie