Bitcoin continues to face resistance near its all-time high, with reduced profitability for short-term holders (STHs) adding downward pressure on its price. The market is showing signs of weaker demand, and selling activity from recent investors is increasing, signaling potential risks of further corrections in the short to medium term. Analysts point to a decline in the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) as a key indicator of this trend. This metric measures whether short-term Bitcoin holders, typically those holding for less than 155 days, are selling at a profit or loss. A falling STH-SOPR suggests more short-term holders are exiting their positions at a loss, reflecting weaker market confidence and heightened bearish sentiment. This pattern often serves as a warning sign. As fewer short-term holders sell at a profit, demand weakens, and selling pressure intensifies. This creates an environment where Bitcoin struggles to regain upward momentum, leaving its price vulnerable to further declines. Analysts suggest that unless new buying interest emerges to counteract the current selling pressure, a correction remains a likely scenario . The broader market sentiment plays a significant role in Bitcoin’s trajectory. If demand resurfaces and investor confidence improves, Bitcoin could attempt to retest its previous high. However, the persistent selling pressure and lack of substantial demand make this scenario uncertain for now. In summary, Bitcoin’s inability to break past key resistance highlights ongoing market fragility. The combination of reduced short-term profitability, weakening demand, and rising selling activity signals a critical period for Bitcoin's price direction . Investors will need to watch closely for any shifts in demand or sentiment that could reverse the current bearish trend.
