This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Bitcoin’s recent on-chain data suggests a potential bearish divergence, indicating that the asset’s peak may be approaching. The Short-Term Holder Spent Output Profit Ratio (SOPR) has been moving in the opposite direction of the price, signaling a shift in market sentiment. When the SOPR is below 1, it implies that investors are selling at a net loss, while values above the threshold indicate profit-taking. In this case, the SOPR for short-term holders (investors who bought their coins within the past 155 days) has been declining, despite the price of Bitcoin experiencing an uplift. This pattern has historically preceded a local top for the cryptocurrency. Currently, Bitcoin is trading around $37,800, showing a 3% increase over the past week.