Bitcoin’s SOPR hits 1, but what does that mean for traders like you?
The post Bitcoin’s SOPR hits 1, but what does that mean for traders like you? appeared on BitcoinEthereumNews.com.
Bitcoin’s long-term holder SOPR hit 1, indicating average sells at break-even Analysis of BTC’s key metrics and patterns suggested the bull run is still on. Bitcoin’s [BTC] recent price action and on-chain metrics are crucial for understanding market sentiment, given its position as the cryptocurrency with the largest market cap. The Long-term Holder SOPR that tracks Bitcoin transactions by those who’ve held BTC for over 155 days is a key metric. When the SOPR’s value is above 1, it indicates profits, while a value below 1 signals losses. After the most recent Bitcoin price drop, the SOPR hit 1, meaning many traders sold at break-even – A sign of market caution. Source: CryptoQuant Bitcoin [BTC], which had previously surged to $62k, is now trading below this level due to massive liquidations around the aforementioned level. BTC’s broadening wedge at critical support level Right now, Bitcoin’s price action in the BTC/USDT pair is advancing within a broadening wedge pattern. This is typically a consolidation phase, signaling the calm before a potential market move. This pattern is sitting at a critical support level, with accumulation continuing as traders remain skeptical about Bitcoin’s potential for an upward projection. Now, there is potential for Bitcoin to slip to the $53k price level before a possible upturn, likely in Q4 2024. The price stalling around $59k adds to the uncertainty surrounding this critical period. Source: TradingView Further analysis of funding rates from Coinglass revealed little change over the past month. This, despite the massive market flush on 5 August triggered by Japan’s stock market crash due to rate hikes. Since then, while funding rates have stabilized, they’ve remained relatively low. This supports the idea that Bitcoin is in an accumulation phase. BTC RSI breakout pointed to a rebound Moreover, Bitcoin’s Relative Strength Index (RSI) recently…
Filed under: News - @ August 31, 2024 11:02 pm