The post Bitcoin STH SOPR Declines Signaling BTC Could Embrace Deeper Market Correction appeared on BitcoinEthereumNews.com.

While there is still no formation of a bearish trend in the BTC market, the digital asset is struggling to break above $100,000. Data according to CryptoQuant shows a decreasing STH SOPR, a significant on-chain data measuring BTC transactions’ profitability. As per the metrics, the declining STH SOPR signals that Bitcoin is preparing for a deeper correction or a period of wider consolidation. This implies that the crypto may not be ready to experience an immediate bullish recovery anytime soon. Bitcoin facing downturn pressure Bitcoin price is witnessing rising pressure as whales continue to offload their positions. This trend has triggered concerns that the ongoing consolidation could heighten. Today, CryptoQuant realized data indicating that STH SOPR is decreasing, meaning short-term Bitcoin holders are increasingly selling their positions at a loss. The interplay of several factors could have triggered the formation of this trend. First, the emergence of a bearish market sentiment appears to have caused panic selling, influencing short-term holders to dispose of their holdings at a loss to avoid greater possible losses. Another possible reason is that margin traders who leverage borrowed money to expand their BTC holdings are vulnerable to selling at a loss. Such forced selloffs may be responsible for the decline in STH SOPR. Lastly, the decrease in STH SOPR could indicate a loss of confidence among short-term traders, resulting in a decrease in Bitcoin’s demand. In the past, whale liquidations have been crucial in influencing market sentiment, typically increasing volatility and causing wider sell pressure. At present, Bitcoin price is moving at a near crucial support level at $93,491. However, continued selloff by whales could push it lower into the bearish territory. Some market analysts project that without a robust recovery in buying demand, BTC could embrace a bearish momentum. However, some consider this as…

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Filed under: News - @ January 4, 2025 10:20 pm