• 17 July, 2024
News

Bitcoin (BTC) Short-term SOPR Crosses Significant Level; Time To Buy?

Bitcoin 30-day SOPR retests vital crossover signaling a change in direction

According to Cryptpquant, the On-chain data indicates a significant threshold. Bitcoin Spent Output Profit Ratio (SOPR) is crossing a psychological barrier hinting at more room for the buyers.

Bitcoin SOPR Near Crucial Juncture

An analyst from CryptoQuant tweeted, the SOPR approaches a crossover. Previously, the SOPR Ratio (30-day MA) reached the bottom before the next bullish spike occurs in Bitcoin price.

Whenever there is a cut of a 30-day MA from the lower level to the 365-day moving average as shown in the above tweet, the Bitcoin price started to rise. Long-term upside trends begin when the blue line crosses above the yellow line. It is just around the corner.

However, there is a warning in July 2015, the same pattern formed but failed, and the Bitcoin price was corrected by nearly 40%.

Source: Trading view

On the daily chart, the Bitcoin price is taking support near the 0.23% Fibonacci retreatment level that extends from the low of $16,915. After appreciating almost 40% to test the high of $25,250. Bitcoin price is under a healthy correction mode. 

However, if the digital asset breaks below the $23,180 level then more downside could be expected in Bitcoin. In that case, the next lower target could be located at 0.38% Fibonacci retracement at $22,100.

Here, the SOPR ratio is approaching a value of 1. The 7-day SMA Bitcoin SOPR is moving toward 1 as the Bitcoin price consolidates near $23,500. This indicates that the price surge got enough buyers into the green that they were able to sell their coins at a net profit.

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