Bitcoin Indicator Signals Potential Top as Bearish Divergence Emerges

The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
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.

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