Key Indicator Flashes Potential Bullish Signal for Bitcoin Despite Miners’ Pressure ⋆ ZyCrypto
The post Key Indicator Flashes Potential Bullish Signal for Bitcoin Despite Miners’ Pressure ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
Advertisement     Bitcoin (BTC) continued to grapple with bearish pressure throughout the week after losing crucial support at $60,000 earlier today and printing its second consecutive bearish weekly candle. Notably, the recent price downturn has been fueled significantly by sell-offs from miners and long-term holders, intensifying the ongoing market corrections. On Friday, Intotheblock, a prominent crypto analytics firm, underscored a notable sell-off by miners, amounting to over 30,000 BTC (approximately $2 billion) since June 1st. This rapid selling pace reflects tightened profit margins following the halving event, compounding the downward pressure on Bitcoin’s price. On-chain data further indicated that the Bitcoin market sentiment has been the least bullish since September 2023. However, despite these challenges, a potentially bullish signal has emerged as the Spent Output Profit Ratio (SOPR). Woominkyu, an analyst at Cryptoquant, pointed out that the SOPR for short-term holders has fallen below 1.0, indicating a possible end to the current correction phase and hinting at a bullish trend ahead. “When the asopr indicator rises above 1, it generally occurs during market uptrends, indicating a higher likelihood of continued price increases. However, historical data suggests that when this indicator approaches 1.08,” the pundit wrote. Advertisement   Although the pundit noted that prices could take slightly longer to recover, he said the resurgence in retail investor demand was a positive indicator amid broader market uncertainty. Recently, analysts from Santiment also underscored this development noting that accumulation among wallets holding 10 or more Bitcoin has surged remarkably a trend reminiscent of accumulation patterns observed two years ago. Other analysts also expressed optimism amidst the current market sentiment. Analyst “El_crypto_prof” highlighted Bitcoin’s position above the 2021 high range, historically a bullish indicator, suggesting potential for upward movement post-halving. Meanwhile, “DaanCrypto” underscored the importance of Bitcoin testing the current bull market support…
Filed under: News - @ July 4, 2024 2:24 pm