$BTC - This is the reason why the undervaluation of Bitcoin persists, despite the realization of profits, 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 potential long-term rebound.

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

According to previous analysis backed by CryptoQuant data, this was a strong accumulation zone. 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.

Data from short-term holders indicate 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 generally indicates an increase in selling near local market peaks.

This does not necessarily imply that the Bitcoin 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 and step-by-step selling strategy. This approach would favor a strategic exit over an emotional one.

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