- Bitcoin short-term holders were still selling their coins at a high profit suggesting a correction could be in play.
- However, Funding Rate, Premium and OI fractal for 2024 suggested that BTC could hit a peak of $160k if it rebounds.
The values of Spent Output Profit Ratio (SOPR) for Bitcoin [BTC] short-term holders (STH) were high indicating that STHs were selling at a profit, often aligning with price highs.
However, if SOPR dipped below 1, this reflected selling at a loss, usually corresponding to price corrections or declines in the market.
This consistent profit-taking by short-term holders could predict potential adjustments. If demand were to wane while profit-taking remained high, price could face downward pressure, leading to corrections.
Source: CryptoQuant
Conversely, if SOPR values indicated losses and continued to decline, it could signal reduced selling pressure, allowing Bitcoin to find stability or support levels, potentially around $90K.
Thus STHs influenced the market’s short-term direction based on their profit or loss realization.
NAV premium for STHs and MACD signals
Additionally, STH NAV Premium dropped to 11.8% from levels above 30% further supporting the anticipated price correction.
Previously, when the STH NAV premium approached zero, a slowdown in selling activity was evident.
This meant holders tended to retain their assets, expecting improved market conditions. The repetitive trend where the NAV Premium dipped towards zero, coincided with reduced volatility.
