Bitcoin Short-Term Holders Maintain Profitability for 30 Days... CryptoQuant Signals Bull Run Resurgence

Bitcoin short-term holders (STH) have maintained profitable positions for nearly 30 days, signaling increased likelihood of a market reversal toward strength, according to analysis.

CryptoQuant, an on-chain analytics firm, identified this trend as one of the key signals indicating that the long-term upward trend may be returning in this cycle. Data shows some Bitcoin short-term holders have remained profitable since August 16, with STH referring to wallets holding unused transaction outputs (UTXOs) for less than six months.

Currently, the profit and loss status among short-term holders is mixed: as of August 15, $16.82 billion in holdings remain in profit, while $10.26 billion are below purchase price. However, CryptoQuant emphasized that it's not just the profit ratio but the continuous 30-day presence in at least some profitable territory that matters.

CryptoQuant noted this is the first time since the market peak that short-term holders have maintained profitability for such an extended period. While similar patterns occurred in January, they lasted less than a week, and in May, loss positions dominated. The current trend suggests recent buyers are holding through losses rather than exiting.

This pattern has also appeared during previous Bitcoin recovery periods, including late 2022 when the bear market was ending. CryptoQuant explained that for a bearish trend reversal to occur, short-term holders must maintain profitability stably and continue holding during an uptrend.

Overall market profit indicators are showing signs of recovery as Bitcoin has maintained most of its August gains. The SOPR (Spent Output Profit Ratio), which reflects realized profits across all investors, surpassed the breakeven point of 1 on August 19 and continues to slightly exceed it. CheckMyCrypto also noted that current short-term holder profit structures resemble early recovery phases in bull markets.

Within short-term holders, different groups are driving profitability: wallets holding for 1-3 months lead the trend with an average purchase price of $63,372, while those holding for 3-6 months have a higher average price of $73,190. This indicates that recent buyers have already entered profit territory, while older short-term holdings remain tied up at higher prices.