$BTC - This is the reason why Bitcoin's undervaluation persists, despite profit taking, according to THIS indicator.

The Short-Term Holder Spent Output Profit Ratio (STH-SOPR) of Bitcoin indicates a possible profit-taking phase. The MVRV-Z score suggests that Bitcoin is undervalued, pointing to a possible long-term rebound.

Bitcoin [BTC] has shown impressive performance, surpassing the accumulation range of USD 85K to USD 70K to recover the milestone of USD 100K.

According to previous analysis backed by data from CryptoQuant, this was a strong zone for accumulation. However, as the market evolves, it may be time to rethink strategies. There are indications that a profit-taking phase may be on the horizon, as investors try to gradually and strategically distribute their positions.

Short-term holder data indicates a profit-taking phase.

The Short-Term Holder Spent Output Profit Ratio (STH-SOPR) is a crucial on-chain tool for monitoring profit-taking activity among short-term Bitcoin holders. When the STH-SOPR enters the red zone, it typically indicates an increase in sales near local market peaks.

This does not necessarily imply that Bitcoin's rally is ending, but it does suggest a high-probability zone for gradual profit-taking. Historical market cycles reveal that red SOPR readings often correspond with euphoric phases.

For Bitcoin investors holding spot positions, it may be a good time to design a structured step-by-step selling strategy. This approach would favor a strategic exit over an emotional one.

Generally, smart investors offload between 10% and 20% at key price milestones, providing "ammunition" to sell at higher levels if the rally continues, while securing profits along the way.