80% of Bitcoin Short Holders Return to Profits According to Analyst ‘FOMO is in full swing’

After a 10% price swing on January 20, Bitcoin (BTC) has remained above $100,000 for six consecutive days, with a price of $106,100 at the time of publication.

Data from Checkonchain, a Bitcoin onchain analysis program, indicates that 80% of short-term holders (STH) are back in the profit bracket after recovering more than $100,000 from BTC. Earlier this month, STH's supply fell to a loss of 65% before Bitcoin rebounded.

It's a good sign that short-term holders of Bitcoin are turning a profit, as they are prone to panic selling during periods of excess. However, CryptoQuant's verified analyst Darkfost's STH-SOPR for short-term holders is turning negative, suggesting that STHs are starting to sell their BTC at a loss.

As shown in the chart, STH holders had longer losses in 2024. It should be noted that the supply of STH in bankruptcy may be high, but the unknown price remains if holders do not sell. As the data above indicates, while STH's profitability was high last week, a bit of panic selling is seeping into the holdings. Despite the concerns, Darkfost added a big caveat to its analysis and said “

“When this metric turns negative, it often highlights attractive entry points for the long term.”

In fact, Axel Adler Jr, a Bitcoin researcher, identified that increased volatility is leading to “higher coin activity” on both the buyer and seller side.

As seen, the Volatility Composite Index, which measures BTC price relative to market activity, has hit a one-month high. With Bitcoin hitting a new all-time high in the past 24 hours, Adler told the narrative that “FOMO is at its peak.”

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The Bitcoin range of $90,000 to $95,000 is the “critical zone”.

While the broader crypto market expects price action over the next few days, Glassnode, an onchain analytics platform, has identified $95,000 to $90,000 as BTC's “critical zone.”

As noted in the chart, this particular region has seen significant realized losses since November 2024, where sellers bought strongly, and buyers moved in. This shows that BTC bullish structure was strong as long as BTC price remained above this range.

Moreover, Mihir, a crypto instructor, said that despite the potential price volatility going forward, the main technical support allows traders to estimate the minimum risk. The technical analyst underlined $90,000-$80,000 as a “safe recovery” level.

According to CryptoQuant data, the realized price of STH is currently around $87,700, which is based on the price of each BTC implemented by BTC technical support onchain.

Related: Bitcoin traders refuse to YOLO after BTC nears $110K – why wait?

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.