Data shared by an observer from the crypto analysis platform CryptoQuant reveals a significant change in Bitcoin's supply dynamics.

Long-Term Holders (LTH) and Short-Term Holders (STH) Bitcoin transfer between, is one of the key factors shaping price movements.

According to historical data, periods when Bitcoin supply transitions from LTHs to STHs are generally associated with market cycle peaks or local tops. This provides critical data to understand the current price dynamics of Bitcoin. Currently, it appears that the demand coming from STHs continues to support the price of Bitcoin. However, this balance can vary depending on the stage of the market and general economic conditions.

Another factor that determines the price of Bitcoin is the realized price of STHs. Analyses based on various acquisition periods reveal a series of support and resistance levels for Bitcoin. The average cost of transactions made by STHs during certain periods shows how profitable or unprofitable the market is for short-term investors. Under current conditions, sales do not seem profitable for STHs. This is confirmed by the fact that the STH SOPR ratio (Spent Output Profit Ratio) remains neutral at level 1.

Correction process may start in Bitcoin

After Bitcoin reached an all-time high of $108,000 in the latest rally, there was a decline in the SOPR ratio. This indicates that in the current market conditions, the sales of Bitcoin by STHs are no longer profitable. However, the downward trend in the SOPR ratio suggests that a reversal to an upward trend for Bitcoin may become more difficult in the near future.

As a result, the selling pressure from LTHs has been largely balanced by the buying demand from STHs so far. However, the decline in STH SOPR ratio indicates that Bitcoin may experience a consolidation period in the short term or may face a deeper correction.