Bitcoin STH-SOPR Falls Below 1.0 for the First Time Since April – What This Means

Bitcoin's short-term outlook appears bearish as short-term holders are selling at a loss. The Short-Term Holder Spent Output Profit Ratio (STH-SOPR) falling below 1.0 indicates capitulation and rising fear. This selling pressure often precedes market stabilization as weaker hands exit. This capitulation could also be the foundation for the next uptrend. The STH-SOPR acting as resistance signals continued loss-driven selling, limiting upward momentum. Historically, such loss-realization periods often coincide with market corrections. When capitulation peaks, it may signal an imminent recovery. Bitcoin is currently trading with modest rebound but facing strong resistance. Key resistance levels are near $112,000, while support lies around $106,000. Reclaiming $112,000 could shift momentum toward $117,500, while failing to hold support could lead to further decline.