Bitcoin’s Price Movement Analysis: The Impact of Short-Term Holders and Long-Term Holders

By Tsunami 05/14/23 4:24 PM

Bitcoin has been experiencing a significant fall in its price recently, with selling pressure from short-term holders and long-term holders not interested in selling significantly. However, analysts suggest that we can combine two useful metrics to estimate short-term holders’ movements: STH-SOPR & SOAB.

According to the STH-SOPR, short-term holders have reached the equilibrium point at the number 1 level of this metric. This means that the behavior of Bitcoin’s short-term holders after reaching this point will clarify the conditions and scenario of the possible Bitcoin price movements.

If there is an increase in the movement of short-term holders based on the SOAB metric when nearby the number 1 level of the SOPR, it will be a sign of the exit liquidity of these holders, and the price will experience another drop. This means that short-term holders are selling their Bitcoin holdings, leading to an increase in selling pressure.

On the other hand, if we reach above the number 1 level of the SOPR again and the interest of short-term holders in accumulation can still be visible, the price will experience another growth. This means that short-term holders are accumulating Bitcoin, leading to an increase in buying pressure.

These metrics provide valuable insights into the behavior of short-term holders and how it affects Bitcoin’s price movements. As the cryptocurrency market continues to evolve, it is essential to keep track of such metrics to make informed decisions about investments in the digital asset space.

It remains to be seen how short-term holders will behave in the coming weeks, and whether Bitcoin’s price will experience another drop or growth. However, the use of metrics like STH-SOPR and SOAB can provide valuable insights into the market trends and help investors make informed decisions.

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