Bitcoin’s short-term holders are reportedly sending signals to buy the dip, according to new research from CryptoQuant. The cryptocurrency has seen a 4% decline in price over the last week, prompting a reset of market indicators. January has been challenging for Bitcoin as volatility tilts downward, and the digital currency struggles to hold its $100,000 benchmark. Amidst this, the spent output profit ratio (SOPR) for short-term holders has dipped below the breakeven point of 1, highlighting a trend among investors holding Bitcoin for less than 155 days who are selling at a loss.
According to CryptoQuant analyst MAC_D, the negative sentiment seen across media platforms underscores a bearish market trend. However, historical data suggests that such moments of capitulation among speculative investors might foreshadow a price bottom, thereby serving as an opportune moment for accumulation. Back in August 2024, a similar situation was observed when STH-SOPR reached its lowest point in over three years, coinciding with short-term Bitcoin price bottoms around $55,000.
Further contributing to the market narrative, the Crypto Fear & Greed Index recently moved to a “neutral” stance, marking its lowest level since October. Meanwhile, Bitcoin whales have ramped up their acquisitions, adding 34,000 BTC over the past month. This trend suggests that as short-term investors face losses, others might view it as a strategic time for buying. Ultimately, selling Bitcoin during such periods might be considered an unwise move, given the potential for price recovery. This analysis does not constitute financial advice, and investors are urged to conduct their own research before making decisions.
