Sideways SOPR: A prelude to Bitcoin’s next big move?

2023-7-18 19:00

Bitcoin’s price has been a study in tranquility since it broke through the $30,000 level, setting a tight trading range between $30,000 and $31,000 for most of July. This period of low volatility has left many traders and analysts uncertain about future price movements. However, on-chain data, specifically the Spent Output Profit Ratio (SOPR), may provide a clearer picture of where the market might be heading.

SOPR is a crucial metric in Bitcoin analysis. It is calculated by dividing the price sold by the price paid for a Bitcoin, effectively measuring the profit or loss made by Bitcoin holders when they sell their coins. A rising SOPR indicates that holders are selling at a profit, while a declining SOPR suggests selling at a loss. The entity-adjusted SOPR, which considers only entities that have been active for at least a month, provides a more accurate gauge of the market.

The 7-day moving average of the entity-adjusted SOPR has been on an upward trajectory since the start of the year, breaking above the value of 1. Despite experiencing several sharp uptrends in January, February, and June, it has been declining since June 27, dropping to a value of 1.03 on July 17.

Graph showing the entity-adjusted Bitcoin SOPR YTD (Source: Glassnode)

However, despite the notable drop, the ratio remains in a profit-dominant regime. This means that, on average, the entities selling their Bitcoin are still doing so at a profit.

According to market analysis, the current sideways SOPR trend could indicate a market in a consolidation phase, potentially setting the stage for the next significant price movement in Bitcoin.

In the world of trading and investing, consolidation is a period of indecision that ends when the asset’s price breaks beyond the restrictive barriers. A substantial price rally could follow this period, as in 2016 and 2019.

Graph showing the entity-adjusted Bitcoin SOPR from January 2020 to July 2023 (Source: Glassnode)

Moreover, a steady SOPR could also suggest a balanced market where the number of Bitcoin sellers making profits is approximately equal to those incurring losses.. This equilibrium could potentially lead to a more stable market, reducing the likelihood of extreme price volatility in the short term.

The post Sideways SOPR: A prelude to Bitcoin’s next big move? appeared first on CryptoSlate.

origin »

ETH/LINK Price Action Candlestick Set (LINKETHPA) на Currencies.ru

$ 467.1 (+0.48%)
Объем 24H $0
Изменеия 24h: 0.85 %, 7d: 17.53 %
Cегодня L: $453.49 - H: $467.1
Капитализация $0 Rank 3676
Доступно / Всего 0 LINKETHPA

price bitcoin between july period volatility uncertain

price bitcoin → Результатов: 126


Bitcoin Price Holds Above $96,000 — Analyst Explains This Level’s Significance

The Bitcoin price appears to have settled within the $92,000 – $102,000 consolidation range, sparking discussions about the coin’s future trajectory. While it remains unclear whether the premier cryptocurrency has enough momentum to forge new all-time highs soon, it would take significant bearish pressure to pull down the BTC price.

2025-2-9 16:00


Bitcoin Price Struggles With Liquidity Blocks From $86,000 To $104,000, Analyst Reveals The Logical Thing To Do

The Bitcoin price has spent the majority of the past seven days consolidating around the $94,000 mark with signs of a break to either side. According to a crypto analyst, Bitcoin’s recent price movements have led to the creation of liquidity blocks observed between the $86,000 to $104,000 range, which raises an equal likelihood of a bounce towards $104,000 or a downside break to $86,000 from the current price.

2025-1-13 14:00


Bitcoin price analysis: economic headwinds push price lower

Bitcoin tested the $92,000 level yesterday after falling from a weekly high of $102,000 as sell pressures mounted Macroeconomic factors cause doubts about the market strength as sticky inflation becomes a concern Spot crypto ETFs logged large outflows on Wednesday following the release of the Fed meeting notes Bitcoin’s price has fallen from a high […] The post Bitcoin price analysis: economic headwinds push price lower appeared first on CoinJournal.

2025-1-11 17:48