STH-RP Indicator and Its Impact on Market Sentiment

Crypto KOL Murphy posted on X about the significance of the STH-RP (Short-Term Holder Realized Price) indicator, which is often regarded by on-chain data analysts as a marker distinguishing bull and bear market phases. When the price is above the STH-RP, it indicates bullish sentiment, whereas a price below suggests bearish sentiment. Currently, the STH-RP is higher than the price and is showing a downward trend with a negative seven-day rate of change. This raises questions about the underlying information and logic, as well as its decisive impact on market trends. Murphy poses a question to the audience: Why does the STH-RP sometimes rise and sometimes fall? Is it related to the fluctuations in BTC's price, or is there no direct correlation? Readers are encouraged to share their thoughts and reasons in the comments section. Murphy also reflects on the current market downturn, suggesting it is an opportune time for reflection and learning. He recalls writing numerous educational posts between March and October 2024, explaining the underlying logic and application methods of on-chain data. He emphasizes that if financial gains are not possible at the moment, one can focus on gaining knowledge, experience, credentials, and networking, which will eventually lead to financial success.