The Bitcoin (BTC) market is currently experiencing significant changes in supply dynamics, with distinct activity between long-term holders (LTHs) and short-term holders (STHs).
According to the latest analysis from CryptoQuant, historically, these transitions have often marked local market tops or even cycle peaks, depending on the overall market environment and broader economic conditions.
Currently, demand from short-term holders is still very important there supporting the price of Bitcoin stability amid continued market volatility.
Long Term Holders Vs. Short term customers
An analysis carried out by the analyst CryptoQuant Darkfost revealed that the short-term holders, especially those who received Bitcoin a few months ago, are actively influencing the market sentiment.
By analyzing the price data produced from different short-term building periods, different support and resistance levels emerge.
These confirmed price ranges include $41,000 for the general average price, $85,000 for short-term holders in total, $99,000 for holders within one week to one month, $81,000 for one to three months, and $60,000 for three to six months.
These numbers indicate key psychological and technical price points where market participants can make major buy or sell decisions, according to Darkfost.
The analyst revealed that the holder's Short Term Spending Product Profit Ratio (STH SOPR) currently remains neutral at 1 after declining from Bitcoin's last rally, which pushed its price to some extent. the highest 108,000. The STH SOPR is a key metric to assess the profitability behavior of short-term holders.
A neutral SOPR reflects that recent sales activity short-term holders have not been very profitable, reducing the incentive for extensive selling at current price levels.
However, this neutral position suggests potential upsides for an immediate bullish recovery. The decline in STH SOPR indicates a decrease in realized profits, which may slow down momentum up in the short term.
Despite these challenges, demand from short-term holders has absorbed much of the selling pressure from long-term holders, preventing a significant decline in prices. Darkfost wrote:
In conclusion, the selling pressure from LTHs has so far been largely absorbed by the buying pressure from STHs. However, we note that the STH SOPR is declining, which may hinder an immediate bullish recovery. In the short term, a period of consolidation or even a deeper correction could occur.
Bitcoin market performance and outlook
Meanwhile, Bitcoin is currently trading at a price of $97,357 after registering a slight increase of 1.1% on the previous day.
While this surge has helped BTC regain positive momentum over the past few weeks, it is still not enough to move the cryptocurrency back to the six-digit price tag or an all-time high above $108,000.
Featured image created by DALL-E, Chart from TradingView
