Analyst: BTC shows bear market signs as short-term holders sell at a loss

A typical bear market pattern is emerging as Bitcoin short-term holders continue to sell at a loss, according to crypto analyst Frank. In a post on X, Frank explained that the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) is repeatedly fluctuating below one. This indicates that these holders are selling their assets at a loss near their average purchase price, a classic bear market behavior. The analyst estimates the average cost basis for short-term holders is around $86,000, while BTC is currently trading at approximately $66,000. However, Frank noted that a bullish signal could appear if these holders begin to view their cost basis as a dip-buying opportunity and start accumulating. He added that even if such a shift begins, it may not initially feel like a bull market.