Indicator Shows Bitcoin Bull Market Characteristics, On-Chain Analyst Reveals
A prominent on-chain analyst highlights a significant indicator that reflects the strength of Bitcoin’s bull market. The pseudonymous analyst known as Checkmate shares with his substantial social media following on X that the short-term holder spent output profit ratio (STH-SOPR) is showing positive signals for a sustained uptrend in Bitcoin.
The STH-SOPR monitors the profit or loss levels of all transferred BTC within the short-term holder group over the last 155 days. Checkmate notes that the STH-SOPR briefly dropped below the “1” level before bouncing back, indicating robust market fundamentals.
In Checkmate’s words, “Bitcoin short, sharp STH-SOPR undercut of 1.0, followed by a break of the STH cost basis. Love to see it, this is what BTC bull markets are made of.”
The analyst also emphasizes that Bitcoin’s price reflects global macroeconomic conditions, stating, “Bitcoin is quite clearly an index on global events. Its price, and investor response to it, are immutably baked into the Bitcoin ledger every block. The on-chain database contained within Bitcoin is one of the most potent sources of market information that exists.”
At the time of reporting, Bitcoin is trading at 67,431, experiencing a slight decline over the past 24 hours. Regarding altcoins, Checkmate cautions that numerous alt projects may be fading due to a lack of utility. He points out, “A lot of altcoin folks are going to confuse ‘my coin isn’t pumping’ with ‘the risk-reward is improving.’ We’re at a point in this game where altcoin products delivered are truly shit, and have negligible demand. The uptrend on your coin is far from guaranteed folks.”
In conclusion, the analysis underscores the importance of the STH-SOPR indicator in assessing Bitcoin’s bull market strength and highlights the broader implications of Bitcoin’s price movements on the global economic landscape.
