Traders Still Selling in Losses

Traders-Still-Selling-in-Losses

Short-term on-chain participants continue to sell in losses (short-term SOPR < 1). Such lack of faith gives rise to a strong resistance at 18k, the rough average cost of entry for short-term participants. With yield curve inversions often preceding recessions and the current 10-year Treasury rate (3.75%) below the 3-month rate (4.22%), I would be careful once the 18k level is reached. 

Note (short-term SOPR vs. aSOPR):
Given all participants who bought after December 2020 are now in loss, it's tough for long-term holder SOPR to turn back to a positive trend anytime soon. As a result, short-term SOPR becomes a more informational and dynamic metric compared to aSOPR/SOPR under current market conditions (aSOPR/SOPR combines both long-term and short-term data).