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The first green month for BTC since March. What can invalidate a stock-to-flow?

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BTC closed July over $ 41,000 in a bullish monthly candle. Before BTC recorded three consecutive monthly red candles. The price thus reached a turnover on the monthly chart which few expected.

BTC / USD 1M.  Source: TradingView
BTC / USD 1M. Source: TradingView

On-chain data show that some long-term hodlers (LTH) actually sell with the growth of BTC / USD. According to analyst Lex Moskovsky, this corresponds to the phase “distrust“, The classic market cycle.

Moskovski raised the indicator of long-term hodlers – spent output profit ratio (LTH-SOPR), which reached its lowest level in 2021 this weekend.

SOPR focuses on the value of coins moving in a specific period of time to get the impression of profitability of coins sold. The decline towards a neutral value of 1 indicates that the profitability of the relevant coins is low.

“Some long-term hodlers sell with minimal profit, as indicated by LTH-SOPR. The indicator reaches this year’s minimum for two days in a row,” said Moskovski.

Bitcoin LTH-SOPR.  Source: Lex Moskovski / Twitter
BTC LTH-SOPR. Source: Lex Moskovski / Twitter

BTC must end August over $ 47,000

Equally excited was PlanB, the creator of the stock-to-flow, which called the BTC July close price a revival.


Stock-to-flow currently represents a BTC price of almost $ 100,000. Although the market price is remote, the model remains valid. PlanB determined minimum close price requirement in August at $ 47,000. Otherwise, the model would expire.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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