Analysis: Bitcoin short-term holders begin to realize losses, market leans towards capitulation or brewing a buying opportunity.

BlockBeats news, November 11 - CryptoQuant analyst Darkfost pointed out that the loss situation of short-term holders (STH) is beginning to manifest in the SOPR (Spent Output Profit Ratio) indicator. This indicator measures the realized profit and loss status when UTXOs are spent, and the current STH SOPR has dropped to 0.98. Since October 30, this indicator has been in negative territory, which means short-term holders are beginning to feel the pressure from the price decline. Previously, the monthly average SOPR for this group had reached 1.013, but the monthly average has now just fallen back to the neutral level of 1, indicating that their average profits have basically evaporated.

Combining data from recent days, the analyst believes the market is leaning towards "capitulation" and panic selling. In the context of a longer-cycle bull market, when SOPR falls into negative territory, it often provides good buying opportunities. However, the current monthly average has not yet reflected an extreme level of panic, suggesting that the current capitulation trend may continue for several days until it reaches a truly extreme level.