Possible bull divergences to form: STHs stay strong

Possible-bull-divergences-to-form-STHs-stay-strong

I wanted to come up with another analysis on Spent Output Profit Ratios (SOPR), and I noticed something quite interesting. But first, it’s worth it mentioning that BTC dropped further below $20k and took out the equal lows at $20.7k.

Long and short term holders’ SOPR have behaved quite differently during this move down (see charts). The former look more interesting, though. LTH SOPR spiked to where it was at the $25k high, meaning that they profited the same at both points. This is due to older coins getting sold, as they’re the ones at a lesser loss.

Short term holders, together with US investors specifically, have shown less selling pressure than at the start of June. As I wrote on the charts, making a lower low would officially set some bullish divergences.

In conclusion, macroeconomic conditions still have to prove getting better, but until we see future releases, we can deduce selling pressure is mainly created by LTHs and STHs put together less momentum.