In the past, short-term holders (STH) realized significant profits, which were evident on the SOPR (Spent Output Profit Ratio) scale reaching a level of 1.1, clearly marking a short-term peak. Following this, Bitcoin entered a period of stabilization. Remarkably, there was no sharp decline; instead, the SOPR began to settle and the profitability of short-term holders rapidly decreased.
Even minor shocks have been significantly affecting the profitability of short-term holders. This suggests that adequate deleveraging has taken place, which could be indicative of "price support" in the data.
During a bull market, the forced selling by short-term holders represented a good buying opportunity.
Written by CoinLupin
