2024-04-23 23:09:23
- Bitcoin veterans made profits on their BTC reserves.
- The drop in production spent on chain ratio could be a warning of a deeper correction.
Bitcoins [BTC] The SOPR metric created another peak and investors have reason to fear market volatility.
Over the past ten days selling pressure has increased ahead of the spread as uncertainty has increased. Long term holders (LTH) added to this pressure.
Settlement heat map analysis in a previous article. AMBCrypto report showed that the $66k-$66.8k region was major short-term resistance.
BTC did not break through this zone, increasing the chance of volatility in the coming days.
SOPR Trendline and Why Traders Should Take Note
The Spent Output Profit Ratio (SOPR) shows the amount of realized gains and losses for all coins moved on the chain.
It is measured as the ratio of the dollar value of Bitcoin products spent in invested time, or realized value, to products spent in created value.
This allows analysts to get a good idea of whether holders are making a profit. With Cryptocurrency PerspectivesA specific change in the SOPR ratio indicated that the number of long-term holders cashing out was increasing.
The falling trend from decades ago indicated that a potential market had hit us. The possibility of a deeper Bitcoin correction was present due to the metric’s firm rejection of this trend.
Short-term holder activity: what is the current Bitcoin price trend?
Short-term SOPR deals with Bitcoin live for more than one hour but less than 155 days. The STH SOPR fell to 0.998 on April 22, indicating that short-term investors were selling at smaller losses.
When comparing it to the 2020 bull run, the metric did not drop below zero after September. Half of that cycle occurred in May, and a correction in August saw this ratio fall below 1.
Bitcoin may be moving down a similar path during this cycle.
The daily chart showed Bitcoin trading within a range since March. The time frame trend was higher and the market structure was firmly bullish.
File Bitcoins [BTC] Price forecast 2024-25
However, the RSI has fluctuated between values of 40 and 60 over the past month, indicating a lack of strong momentum.
OBV was also unable to avoid the highs reached in mid-March. Encouragingly, it has risen over the past ten days to reflect increased buying pressure. Overall, a price correction was still possible.
This is an automatic translation of our English version.
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