Since April 2023 SOPR STH has not reached the mid-range (marked in yellow on the chart), signaling that retail is back in the market taking profits as the price of Bitcoin rises.
Short-term holders are considered retail, as they are only in the market speculating on price appreciation during a trend.
SOPR STH only considers UTXOs with a lifespan of 1 hour - 155 days on-chain in profit/loss in the window between creation and output spent.
Therefore, as the realization flow of this category of Investors increases the risk of a local top formation accompanies, since these traders provide liquidity for large players to fill orders.
However, there is still a large gap to the Extreme Greed range in which the Bitcoin price has already visited several times during previous bullish cycles.
Written by G a a h
