Bitcoin’s Brief Dip Below $100,000 Pushes Short-Term Holders into the Red

Bitcoin’s price dipped below the $100,000 mark during Monday’s intraday trading session. While the leading coin’s price has since rebounded to trade at $102,691 at press time, its short-term holders (STHs) still feel the sting of the temporary price drop.

On-chain data reveals that this cohort of BTC holders continues to sell at a loss. 

Bitcoin Short-Term Holders Count Their Losses

According to data from CryptoQuant, the Spent Output Profit Ratio (SOPR) for Bitcoin’s STHs has trailed downward over the past week. As the coin’s price broke below the $100,000 mark yesterday, the metric’s value fell under 1. As of this writing, it is at 0.99.

The STH-SOPR gauges the profitability of the short-term holders of a particular crypto asset. It generally offers insights into whether investors who have held a specific asset for three to six months are in a profitable or unprofitable position. 

If the STH-SOPR is above 1, it indicates that short-term holders are, on average, selling their coins at a profit. Conversely, if the STH-SOPR is below 1, it suggests that these holders are selling at a loss.

Bitcoin Short-Term Holder SOPR. Source: CryptoQuant

At 0.99 as of this writing, BTC’s STH-SOPR suggests that investors who have held their coins for less than six months are, on average, selling at a loss below their acquisition basis. 

Although BTC’s price has rebounded from Monday’s low, a negative bias continues to trail the king coin. This is evidenced by its negative weighted sentiment, currently at -0.48. 

An asset’s weighted sentiment measures its overall positive or negative bias. It tracks the volume of social media mentions and the sentiment expressed in those mentions. 

Bitcoin Weighted Sentiment. Source: Santiment

As with BTC, a negative value is a bearish signal. It indicates that investors have become increasingly skeptical about the token’s near-term outlook, causing them to trade less.

BTC Price Prediction: Will It Reclaim $109K or Slip Below $100K?

BTC’s price will shed its recent gains if this negative bias strengthens and trading momentum wanes. It could drop below $100,000 to trade at $99,378 in that case.

Bitcoin Price Analysis. Source: TradingView

Conversely, if the uptrend is sustained and market sentiment improves, the coin could attempt to reclaim its all-time high of $109,356.