With Bitcoin trading just below its $109k all-time high, market excitement is resurfacing. The Short-Term Holder Supply in Profit/Loss Ratio effectively tracks sentiment shifts among active investors.

This metric proved valuable during the April 7th correction, plunging to 0.03 when nearly all STH-held supply went underwater at the $76k low. Since then, it has surged above 9.0, indicating over 90% of STH supply is now profitable.

High ratio values typically suggest higher-risk conditions as investors begin taking profits. While these conditions can persist, they often precede profit-taking phases or local tops if fresh demand slows.

Bullish momentum generally continues as long as this ratio stays well above the equilibrium level of 1.0. However, any sustained drop below this threshold would signal weakening market strength and possible trend exhaustion.