Strong Bitcoin Rise “Expected Within 1-2 Months,” Quant Explains Why
03 Dicembre 2024 - 3:00AM
NEWSBTC
A quant has explained how Bitcoin may be expected to see a strong
rise in the coming months based on a golden cross that has occurred
in this indicator. Bitcoin SOPR Has Just Witnessed A Bullish
Crossover As an analyst in a CryptoQuant Quicktake post
pointed out, the Bitcoin Spent Output Profit Ratio (SOPR) has shown
a golden crossover recently. The “SOPR” here refers to an indicator
that tells us whether the BTC investors are selling their coins at
a profit or loss. This metric works by going through the
transaction history of each coin being sold/transferred to see what
price it was moved at last time. If this price is less than the
current spot price for any token, its sale contributes to profit
realization. Related Reading: Dogecoin TD Sell Signal Goes Off, But
Here’s Why Parabolic Bull Run Can Still Continue Similarly,
transactions involving coins of the opposite type imply loss
realization is occurring. The SOPR sums up these profits and losses
for the entire sell supply, and determines their ratio. When the
value of this indicator is greater than 1, it means the average
holder could be assumed to be selling their coins at a net profit.
On the other hand, being under the mark implies that the overall
market is realizing more losses than profits. Now, here is a chart
that shows the trend in the 30-day and 365-day moving averages
(MAs) of the Bitcoin SOPR over the past decade: As is visible in
the above graph, the 30-day MA of the Bitcoin SOPR fell under the
365-day earlier in the year, but recently, it has reversed its
direction and has broken past the level. This increase naturally
corresponds to the return of notable profit-taking in the sector
following the latest rally of the cryptocurrency. In the chart, the
quant highlighted the previous instances of this crossover. It
would appear that each of these led into bullish price action for
the asset. “After the golden cross appears, the market usually
starts a strong rise within 2 months at the latest,” notes the
analyst. Thus, it’s possible that Bitcoin could be gearing up for
another run shortly. This latest bullish crossover in the Bitcoin
SOPR is the second time this cycle that the pattern has appeared,
so it’s possible that the run now would lead the asset to its final
peak of the cycle. Related Reading: Ethereum Open Interest Sets New
Record, Analyst Says Fireworks ‘Guaranteed’ It remains to be seen,
though, whether the crossover between the monthly and yearly
averages of the indicator would prove to be bullish for BTC or not.
BTC Price At the time of writing, Bitcoin is trading at around
$95,000, down almost 3% over the last week. Featured image from
Dall-E, CryptoQuant.com, chart from TradingView.com
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