Bitcoin Sellers Retreat: Market Recovery Ahead?

Bitcoin’s price currently sits at $98,000, showing signs of potential recovery despite recent bearish pressure. The cryptocurrency has experienced a 10% decline from its all-time high of $109,000, prompting analysts to examine on-chain metrics for future direction.

Understanding the Short-Term Holder Dynamics

The Short-Term Holder Spent Output Profit Ratio (STH SOPR) has emerged as a crucial indicator. This metric tracks whether holders of less than 155 days are selling at profit or loss. Recent data shows a significant shift in selling behavior.

Three major corrections in 2025 have tested market resilience:

• January 8: Price dropped from $104K to $92K (STH SOPR: 0.987)
• January 27: Correction from $106K to $102K (STH SOPR: 0.990)
• February 2: Decline from $104K to $91K (STH SOPR: 0.984)

Market Sentiment Analysis

Bitcoin now consolidates between $94K and $97K, with STH SOPR reaching 0.998. This near-neutral level indicates reduced panic selling. Short-term holders have stopped selling at significant losses, suggesting growing market confidence.

Technical Outlook

The current consolidation phase could set up a strong foundation for future growth. The STH SOPR’s stabilization near 1.0 historically precedes positive price action. Technical support levels have formed around $94,000, with resistance at $100,000.

Market Implications

The retreat of short-term sellers could trigger several positive developments:

• Reduced selling pressure supporting price stability
• Improved market sentiment attracting new investors
• Potential catalyst for breaking above $100,000
• Enhanced institutional confidence in Bitcoin’s stability

The current market structure suggests a potential shift from bearish to neutral territory. Investors should monitor the $100,000 psychological level for confirmation of trend reversal.

Tags: Bitcoin, Cryptocurrency Markets, Technical Analysis, Trading Metrics, Market Sentiment

Source: NewsBTC