Supply absorption ‘key question’ as Bitcoin fails to reclaim $80K: Analysis
Bitcoin struggled to establish support at $80,000 as investor cohorts all returned to net profitability.
Bitcoin's struggle to reclaim the $80,000 level has raised questions about whether new demand can absorb the selling from holders who are now profit-taking. Older investors, with coins held for longer periods, have shown increased on-chain activity as the price surged more than 25% in a week. The spent output profit ratio (SOPR) for older coins has risen to 1.48, indicating greater on-chain activity among in-profit coins.
The ratio of SOPR between short-term and long-term holders reached 1.4, the highest since July, suggesting long-term holders are realizing profits at a higher rate. However, the recent trend shows a decline in this ratio to 0.93, indicating stronger performance for short-term holders. With all holder cohorts now in profit, sustained buyer support is needed to overcome the hurdle and push Bitcoin above $80,000.
The Coinbase premium, a measure of US investor demand, has turned positive, which could signal a shift in market dynamics if it remains elevated alongside Bitcoin's price recovery.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
