The price of Bitcoin has shown signs of resilience and strength during this weekend after facing a significant low pressure that is directed towards it. On Friday, August 5, the cryptocurrency laid suffered a mild correction after the weakest employment data release than expected in the United States.
While the price of Bitcoin has fought to get out of its current agitator, its holding held above the psychological level of $ 110,000 shows the current resolution of investors. The latest data in the chain suggests that the market could have absorbed excess sales pressure and could be recovering the impulse.
Is BTC ready for a higher sustained movement?
In a September 6 publication on Platform X, the Pseudonym Cryptography analyst Frank revealed a change in the activity of a key group of Bitcoin investors in recent weeks. According to the market amount, BTC (STH) short -term holders (with holdings of coins of less than 155 days) are beginning to block some of their profits.
This observation in the chain is based on the metric of the short-term worn production gain ratio (STH-SAPR), which evaluates the profitability ratio of the results spent (maintained for more than 1 hour but less than 155 days). This indicator provides information on whether STHS is selling with profits or losses.
When Bitcoin STH-SAPR metric has a value greater than 1, it implies that short-term investors are selling with profits. On the other hand, a STH-SAPR value less than 1 suggests that short-term holders are capitulating and selling with losses.
Frank shared that the Bitcoin Sth-Sapr metric has returned above the critical level of 1 threshold for the first time in 20 days. This means that short -term investors, who were busy selling with a loss the last three weeks, are now back to get profits.
In general, when the STH-SAPR metric is below 1, it means that weak hands are leaving the market, allowing diamond hands (long-term investors) to accumulate. Meanwhile, a return over the threshold of 1 could mark the end of that distribution period, with a recovery rally typically on the horizon.
However, the relevant question remains if the last 20 days were enough to shake weak hands for the next advantage. Frank said the market might want to inflict more pain in the short -term title cohort before the next higher movement. Therefore, investors may want to be cautious before making a decision, since the market seems to be at a critical situation.
Bitcoin price at a glance
At the time of writing this article, the price of BTC is around $ 110,200, which does not reflect a significant movement in the last 24 hours. According to Coingcko, the market leader has increased by almost 2% in the last seven days.
