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Bitcoin (BTC) is poised for a favorable near-term trajectory, as blockchain data reveals that short-term holders are smartly capitalizing on profitable opportunities by moving their cryptocurrency coins.

Blockchain analytics firm Glassnode has reported a notable resurgence in the seven-day moving average of the short-term holder's (STH) spent output profit ratio (SOPR), surpassing the threshold of 1.

"After a brief stint of coins moving at a loss, STH-SOPR is now back above 1," analysts at Blockware Solutions said in a weekly newsletter. "This is bullish for near-term price action as it shows capitulation from short-term holders."

When the short-term holder SOPR surpasses 1, it signifies that the average short-term holder in the market is selling coins at a profit. Conversely, a reading below 1 is indicative of capitulation, while a reading of 1 suggests that the average short-term holder is merely breaking even.

The SOPR is determined by dividing the actual dollar value of a spent output (UTXO) by its value at the time of creation, providing an indicator of the realized profit percentage for all coins transacted on the blockchain. The short-term holder SOPR specifically targets wallets that have held their coins for less than 155 days, highlighting their degree of realized profit.

During bullish market conditions, the STH SOPR has consistently remained above 1. This trend is logical, as it enables short-term holders, who are typically newcomers, active traders, or individuals with less conviction, to sell their assets at prices higher than their initial purchase cost.

Moreover, the region near 1 often functions as a supportive level during periods of bullish momentum. Holders, anticipating ongoing price surges, perceive their entry point as a lucrative opportunity to make profitable purchases. Conversely, level 1 serves as a resistance point during bearish trends.

In January, the STH SOPR experienced a bullish trend reversal as it surpassed the 1 mark, and it has subsequently tested the support level on two occasions. According to CoinCryptoUs data, Bitcoin has witnessed a remarkable rally of over 68% this year. At the current moment, the cryptocurrency is trading around $27,900, with a peak of $28,441 recorded during overnight trading, as reported by CoinCryptoUs.

A month ago, Bitcoin's long-term holders transitioned into a profitable position, indicating the onset of a significant bullish phase.