Bitcoin's $100K Dip: Short-Term Holders Selling at a Loss

Bitcoin's Brief Dip Below $100,000 Pushes Short-Term Holders into the Red

Bitcoin's price briefly dipped below the $100,000 mark during Monday's intraday trading session, pushing short-term holders (STHs) into the red. While the leading coin's price has since rebounded to trade at $102,691 at press time, its short-term holders continue to sell at a loss.

On-chain data reveals that this cohort of BTC holders continues to sell at a loss. The Spent Output Profit Ratio (SOPR) for Bitcoin's STHs has trailed downward over the past week. As the coin's price broke below the $100,000 mark yesterday, the metric's value fell under 1. As of this writing, it is at 0.99.

The STH-SOPR gauges the profitability of the short-term holders of a particular crypto asset. If the STH-SOPR is above 1, it indicates that short-term holders are, on average, selling their coins at a profit. Conversely, if the STH-SOPR is below 1, it suggests that these holders are selling at a loss.

At 0.99 as of this writing, BTC's STH-SOPR suggests that investors who have held their coins for less than six months are, on average, selling at a loss below their acquisition basis. Although BTC's price has rebounded from Monday's low, a negative bias continues to trail the king coin. This is evidenced by its negative weighted sentiment, currently at -0.48.

An asset's weighted sentiment measures its overall positive or negative bias. It tracks the volume of social media mentions and the sentiment expressed in those mentions. As with BTC, a negative value is a bearish signal. It indicates that investors have become increasingly skeptical about the token's near-term outlook, causing them to trade less.

BTC's price will shed its recent gains if this negative bias strengthens and trading momentum wanes. It could drop below $100,000 to trade at $99,378 in that case. Conversely, if the uptrend is sustained and market sentiment improves, the coin could attempt to reclaim its all-time high of $109,