Bitcoin Bullish Trend Uncertain despite Adjusted SOPR Optimism


In recent days, following the halving event, the trajectory of Bitcoin’s value has left many investors yearning for more. Indeed, the much-anticipated surge above the $65,000 mark has been elusive, with the price of the crypto falling short last week. At the time this narrative is penned, Bitcoin’s value rests at $62,105—an unsettling dip of 2.96% within the last 24 hours, and a decline of 6.14% in the past seven days.

This snapshot of the tumultuous world of Bitcoin invites the nuanced analysis of a CryptoQuant analyst. Notably, the analyst points to the Adjusted Spent Output Profit Ratio (aSOPR) of Bitcoin. Despite the present dismay of investors, the aSOPR for Bitcoin treads on bullish ground, providing a glimmer of hope: perhaps a reversal is imminent, paving the way for a new tide of bullish momentum in the crypto’s price.

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Unraveling the state of affairs a bit more, we get to the heart of Bitcoin’s current predicament. Bitcoin teeters on the edge of recording a new monthly low, with looming threats of further descents below the $62,000 mark. An insightful analysis by Phi Deltalytics, a fellow analyst at CryptoQuant, during a recent weekend, offers a timely perspective. According to him, the SOPR ratio—a less commonly used but potent metric for evaluating Bitcoin—showcases a noteworthy indecision in the short-term trajectory of the crypto.

Indeed, Phi’s study unfolds an intriguing narrative: a fluctuating SOPR ratio that mirrors the prevailing market sentiment. Yet, the analysis offers a silver lining—the bullish tread of the adjusted SOPR continues undeterred and reflects thoughtful planning when diving into the market’s tumultuous waters.

So, what does this ambiguity mean for Bitcoin? The disarray between SOPR and its adjusted ratio implies that many of those who currently hold Bitcoin short-term are dealing with losses. Intriguingly, another analysis by CryptoQuant seems to second this notion—the long-term SOPR to short-term SOPR ratio appears to tip the scales towards long-term holders. This suggests that long-term holders are reaping larger profits in comparison to their short-term counterparts, reinforcing the continued bullish momentum of the adjusted SOPR.

Digging deeper, it becomes unmistakable that the current market conditions and Bitcoin’s price are far from ideal for short-term holders. Furthermore, this gap in potential gains likely owes to the stalemate in the crypto’s upward momentum, possibly influenced by some long-term holders opting to liquidate their holdings.

Phi Deltalytics sheds light on an alarming possibility as well: if the adjusted SOPR turns bearish, the Bitcoin price might experience a swift and steep downturn.

“Should the bullish aSOPR shift amidst the oscillating short-term SOPR trends,” Phi observes, “it could trigger a prompt, dramatic plunge in Bitcoin’s value.”

Respite from the current market turbulence and when it might end remains uncertain. Ever since it achieved a new peak, the price of Bitcoin has drifted between $60,000 and $70,000. Investors have long awaited the breakthrough above $74,000, but have instead been met with inertia. This stagnation has led several market observers to surmise that Bitcoin might have hit its apex in this market cycle.

Nonetheless, only time shall unfurl the true course of Bitcoin’s price in the coming months. The recent conclusion of another halving event might serve as the catalyst for the crypto’s price to climb within the next nine months once again, if history does indeed repeat itself.