The rising STH SOPR 30DMA shows increased profit-taking by recent investors, yet signals remain below overheated levels.
Despite active selling, Bitcoin's upward trend remains intact, with no signs of broad panic or market reversal.
Continued buyer interest and gradual SOPR growth suggest sustained market strength without signs of euphoric exhaustion.
Bitcoin's current on-chain data are depicting rising short-term holder profit-taking activity, but the overall market uptrend remains. According to the Short-Term Holder Spent Output Profit Ratio (STH SOPR) 30-day moving average (30DMA), short-term holders are more and more realizing profits, marking active trading at prices very near all-time highs.
Though this spiking in profit realization is not predicting that the market is getting into overheated or euphoric condition—a condition most often pointing towards impending correction—the market's uptrend remains intact.
https://twitter.com/AxelAdlerJr/status/1927962791442346072 Increase in Realized Profits Highlights Market Activity
The STH SOPR 30DMA, which is a widely observed metric to measure the average profit or loss that is realized by short-term holders when they offload coins on-chain, has just reached a new all-time local high. This is indicative of the fact that many investors who bought Bitcoin in the last few weeks or months are now selling in profit. A rising SOPR value of over 1.0 guarantees that coins are, on average, sold for more than they were bought.
Typically, this shift happens before price reductions or stability, but the extent of it currently is lower than seen in the past. Although traders are taking profits, Bitcoin’s overall interest and demand are not decreasing much.
Bullish Structure Intact Despite Selling Pressure
The chart data reflects that despite increased profit realization, the structural integrity of the market’s upward trend has not been compromised. Notably, past instances of SOPR peaks—visible in 2021 and late 2023—were followed by price corrections only after the metric reached clearly overextended levels. Presently, the STH SOPR remains moderate, suggesting that the market may still have room to grow before reaching exhaustion.
However, Bitcoin saw a 0.9% decline trading at approximately $107,968 over the previous 24 hours. Key technical levels identified included a support mark at $107,107 and resistance at $109,057.
Demand Remains Resilient, Preventing Price Declines
One notable observation is the continued resilience in demand. The SOPR curve, while rising, is not exhibiting sharp spikes that would typically indicate market-wide fear or overheating. In fact, the relatively gradual ascent signals measured profit realization alongside sustained interest from buyers—both retail and institutional.
Market participants appear to be responding to broader macroeconomic factors and increasing institutional involvement, which may be helping to stabilize sentiment. This includes regulatory developments, ETF activity, and broader asset allocation strategies involving digital assets. In summary, the current behavior of the STH SOPR indicator suggests that short-term holders are capitalizing on gains without significantly impacting Bitcoin’s broader bullish momentum.
