Short-Term Bitcoin Holders Have Been Mostly in Profit for a Month: A Reversal Signal?

While Bitcoin’s short-term holders have remained mostly in profit for about a month, CryptoQuant considers this outlook a significant signal regarding a bear market reversal.

CryptoQuant reported that the duration of short-term holders (STH) staying in the profit zone has lengthened compared to previous periods. According to the analysis, these investors have been mostly in profit for about a month. This situation stands in contrast to the profit period in January, which lasted less than a week.

In May, losses carried by STHs remained dominant. In the current outlook, short-term holders’ profits are around $168.2 billion, while losses are at the $102.6 billion level. The data shows that the profit side is trending above the loss side.

Why is it important for short-term holders to remain in profit?

CryptoQuant states that data from the 2022-2023 period shows a correlation between the end of bear markets and short-term holders consistently remaining in profit. Since these investors react more quickly to price movements, every profit period in the past created short-term selling opportunities. Subsequently, transitions back into the loss zone increased selling pressure and capitulation.

Therefore, the critical point in the current situation stands out not just as entering profit, but as the extension of the duration spent in profit. According to CryptoQuant, Bitcoin holding permanently above $80,000 could be an important confirmation condition for this outlook to strengthen.