G a a h2023-02-02

STH SOPR with MA30d reaches 14-month high

Since November 2021, Short Term Holders, on average, have not realized a profit of this magnitude. In the last 400 days, Short Term Holders have had a tough time in the market, realizing/spending BTC at a loss. The green box marks the times when STH SOPR reaches values below 1.00, which means that most Short Term Holders are selling Bitcoin at a loss. This is a time of accumulation, as most Short Term Investors are in extreme fear and do not hesitate to sell at a loss. Historically the green box has indicated bottoms in the price of Bitcoin. However, spikes above 1.00 means that UTXOs spent on the network accounting for their lifetime between 1 hour to 155 days are being spent at a profit during the price rise. Therefore, retailers are back in the market, realizing increasing profit during Bitcoin's recent price rise. When retail starts to get euphoric, the probability of a near-term price top starts to increase.