Bitcoin’s recent rally has hit a temporary roadblock as the cryptocurrency retraces from its $104,000 peak. The leading digital asset is currently trading at $102,004, showing a modest 1.2% decline over the past 24 hours while maintaining an impressive 20% monthly gain. This price action comes as key on-chain metrics reveal interesting dynamics between different holder groups.
As noted in our recent analysis showing long-term holders’ reluctance to sell at $101K, the market continues to display mixed signals regarding investor behavior.
Long-Term Holder SOPR Analysis Reveals Profit-Taking Patterns
CryptoQuant analyst Carmelo Alemán’s latest research highlights a significant 71.33% increase in the Bitcoin SOPR (Spent Output Profit Ratio) for long-term holders since March 12. This metric indicates that coins moved by seasoned investors are being sold at an average profit of 227.41%, suggesting strategic profit-taking is underway.
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Contrasting Market Perspectives
However, another CryptoQuant analyst, ShayanMarkets, presents a different view, suggesting that while some profit-taking is occurring, long-term holders aren’t significantly contributing to selling pressure. This aligns with recent institutional developments, including major ETF investments from Abu Dhabi funds.
FAQ: Understanding Bitcoin SOPR
What is Bitcoin SOPR?
SOPR (Spent Output Profit Ratio) measures the profit ratio of coins moved on-chain, helping identify whether holders are selling at a profit or loss.
Why is the current SOPR significant?
The 71.33% increase indicates substantial profit-taking by long-term holders, potentially signaling a local top or consolidation phase.
What does this mean for Bitcoin’s price?
While profit-taking could create short-term selling pressure, strong institutional demand and holding patterns suggest the broader uptrend remains intact.
Market Outlook and Technical Levels
Bitcoin currently sits at a critical juncture, with $100,000 serving as major psychological support. The recent pullback aligns with typical profit-taking behavior seen in previous bull markets, though institutional involvement may provide stronger support levels than in past cycles.