December 5, 2021

Bored with Bitcoin? The BTC bull run is about to return, this indicator says

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Bitcoin (BTC) hodlers hoping for a return to the bull run may not have long to wait, as a popular indicator gives cause for optimism.

As compiled by on-chain monitoring resource Glassnode, data from the Bitcoin spent output profit ratio (SOPR) suggests that the current BTC price correction is almost complete.

BTC price correction should end “soon”

The SOPR tracks the percentage of coins being moved that are in profit — in other words, whether hodlers are selling at a profit or loss.

When the indicator is above 1 and falling, it reflects sellers divorcing themselves of their holdings at various profit margins. Once 1 is hit, “resetting” the SOPR, sellers have sold all that they can, which reduces downward price pressure and notionally allows Bitcoin to increase once again.

The SOPR has shown its muscle in various phases of past bull cycles, and the resetting phenomenon was particularly successful at charting price bottoms in 2020. 

Now, with a decreasing trend nearing the magical 1 value, market participants are hoping that the past week’s sell-off may be the end, rather than the beginning, of lackluster performance.

“So, if we are in aTitle: Bored with Bitcoin? The BTC bull run is about to return, this indicator says
Sourced From: cointelegraph.com/news/bored-with-bitcoin-the-btc-bull-run-is-about-to-return-this-indicator-says
Published Date: Tue, 26 Jan 2021 14:32:56 +0000