Bitcoin STH Demand On The Rise – Key Price Levels To Watch

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As a seasoned analyst with over two decades of market observation under my belt, I find myself intrigued by this recent surge in Bitcoin (BTC) above the 98,000 mark. The confluence of short-term holder demand and long-term holder selling spree as revealed by CryptoQuant’s Darkfost is a fascinating study in market dynamics.

The current scenario, with Bitcoin long-term holders offloading their assets while short-term holders step in to mop up the selling pressure, reminds me of a game of musical chairs – each player eagerly waiting for their turn to exit, but the music continues to play.

Darkfost’s analysis of critical support levels at $85,000, $81,000, and $60,000 offers valuable insights into potential market behavior. However, the looming resistance at $99,000, where short-term holders may look to cash in their initial investments, is a concern that warrants careful consideration.

The neutral SOPR value of 1 suggests that short-term holders are not selling in profit and may ease up on their selling pressure. This could potentially prevent a full bullish market recovery, leading me to predict Bitcoin to remain in consolidation with the possibility of further price correction.

In the grand scheme of things, Bitcoin is still in an uptrend, and these fluctuations should be seen as opportunities rather than threats. As they say, “Buy the rumor, sell the news.” The key lies in timing – entering the market when the music slows down and the chairs are plentiful, and exiting when the music quickens and the chairs disappear!

And now, for a bit of levity, let me leave you with this: Remember kids, in the crypto world, it’s not about catching falling knives, but rather, dancing around them!

After experiencing a modest price uptick over the past week, Bitcoin (BTC) has climbed above 98,000 as market bulls pursue a return to the $100,000 price range. It’s worth noting that a study by CryptoQuant analyst Darkfost shows a rise in demand from short-term investors aligning with this current price surge.

Bitcoin STH Appetite Mops Up LTH Selling Pressure

In a QuickTake post published on Friday, Darkfost indicates that long-term Bitcoin holders are currently selling in large quantities, coinciding with increased buying from short-term investors. According to market trends, as per Darkfost’s analysis, such asset transfers typically happen after a local market peak or the conclusion of a bull cycle, potentially signaling some worry about Bitcoin following the December price correction.

When examining potential future actions for an asset, Darkfost has identified the price range around $85,000 – derived from short-term holders’ current market activity – as a significant area of interest.

As a researcher examining Bitcoin’s market dynamics, I’ve found that the Short-Term Holder Realized Price (STH-RP) serves a significant role. This price point is calculated by averaging the purchase prices of all Bitcoins held by short-term investors. In many instances, it functions as a physiological level, capable of acting either as a supporting or resistant zone in the market.

In its current upward trajectory, Bitcoin’s key support level is considered to be around $85,000. If a retest occurs, this level should help maintain the bull market. Additionally, other important support levels, as indicated by data from longer-term acquisition periods (ranging from one week to six months), include $81,000 and $60,000.

Despite Bitcoin’s recent surge, a significant barrier lies ahead at approximately $99,000. This level marks the realized price for those who recently purchased (within a week to a month). Newcomers might choose to sell as Bitcoin reaches this price point in order to recoup their initial investments, potentially hindering further growth.

SOPR Shows No Profit For Short-Term Holders 

Meanwhile, Darkfost observes that the Short-Term Holder Spent Output Profit Ratio (SOPR), following Bitcoin’s decline from $108,000 in December, now stands at 1, indicating a neutral stance.

From my perspective as an analyst, it appears that short-term holders are reluctant to cash out their profits and may even reduce their selling activity. Concurrently, the increasing demand from these same short-term holders could offset the sell-off by long-term holders. This situation might lead to a decrease in market liquidity, potentially hindering a complete bullish market recovery.

Consequently, Darkfost anticipates Bitcoin could continue to stabilize, potentially leading to a further adjustment in its value.

Currently, as I speak, Bitcoin is being traded at approximately $98,030. This comes after a rise of 1.27% over the last day. Simultaneously, the trading volume has decreased by 15.47%, currently standing at around $36.26 billion.

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2025-01-04 23:42