Indicator Overview

The STH SOPR Momentum indicator measures Bitcoin’s short-term holder profitability momentum by subtracting the 155-day simple moving average (SMA) from the daily Short-Term Holder Spent Output Profit Ratio (STH SOPR), a metric tracking whether recent holders (coins <155 days old) are selling at profit (>1) or loss (<1). The resulting differential is displayed as a filled histogram on the primary axis, with green above zero (positive momentum, indicating rising profitability) and red below zero (negative momentum, signalling increasing losses), while Bitcoin price is overlaid on a secondary logarithmic axis in white for context. Optional moving average overlays on the momentum line provide further smoothing.

How To Use

Positive and rising momentum (green bars expanding above zero) signals strengthening short-term holder profitability, often confirming bullish regimes, fresh inflows from speculative buyers, and potential trend continuation, ideal for holding or adding to long positions. Negative and deepening momentum (red bars plunging below zero) reveals mounting losses among recent holders, typically marking capitulation phases, fear-driven bottoms, or attractive accumulation zones, creating high-conviction entry signals. Divergences are key: price rallying while momentum weakens (fading green or turning red) warns of exhaustion and reversals, whereas price weakness with improving momentum (red fading or crossing green) suggests resilient demand and upcoming rebounds. Traders monitor zero-line crosses for regime confirmation, extreme positives for profit-taking, and deep negatives for contrarian buys, making this a precision tool for timing short-term sentiment shifts and cycle inflections in Bitcoin markets.