Short-term investors began selling assets at a loss for the first time in four months
- Short-term holders are posting losses again for the first time in four months, CryptoQuant said.
- The SOPR indicator fell below the breakeven line despite the rise in the price of Bitcoin.
- Analysts note weak activity among retail investors and the absence of a euphoric phase.
The Spent Output Profit Ratio (SOPR) indicator for short-term Bitcoin holders has dropped below 1 again, meaning that members of this group have started selling assets at a loss, according to CryptoQuant.
According to them, prior to this, the SOPR value remained above the breakeven level for more than four months, which indicated speculator confidence and positive short-term dynamics.
Note that SOPR is an indicator used to analyze the profit or loss status of Bitcoin investors.
The experts added that a drop below the 1 mark could signal a loss of confidence among investors. They also noted that despite Bitcoin's rise from around $60,000 to nearly $125,000 over the past year, there have been no characteristic spikes that usually accompany euphoric phases.
In previous cycles, sharp increases in SOPR coincided with zones of “extreme greed” and mass participation of retail investors. This time, retail is not showing activity, and the market is likely supported by institutional players, the statement said.
“Historically, market tops have only been confirmed when SOPR has reached extreme greed levels – something that has not happened in this rally. This lack of signal suggests that the long-term trend remains intact and the current loss-taking may just be a healthy pause within a larger bull cycle,” the experts noted.
They concluded that if price finds solid support and SOPR rises above 1 again, the likelihood of the uptrend continuing will increase and the market could target new highs before significant exhaustion occurs.
Recall that CryptoQuant previously stated that the influence of retail traders is growing in the Bitcoin futures market.
Source: cryptonews.net
