[ad_1]
The resumption of the bull market that Bitcoin (BTC) cryptocurrency holders expect may be near. This is because popular price indicators are bullish.
According to the cryptocurrency data analysis crystal node, “Bitcoin SOPR,” which is the ratio of the sale price to the purchase price of Bitcoin, shows that the current tightening period will end soon.
BTC adjustment ends “soon”
Bitcoin SOPR is the percentage of Bitcoin that is profitable and in motion.
If the index is “1” or higher and is decreasing, it indicates that the seller is proceeding with the sale. When it reaches “1”, SOPR means “reboot”. This is because the seller sells all the profitable Bitcoins, which weakens the selling pressure and tends to increase the Bitcoins.
SOPR has performed well in various parts of the bull cycle in the past, with the “reset” phenomenon bottoming out in 2020.
With the downtrend approaching “1”, market participants are expecting last week’s wholesale to end up underperforming rather than start to decline.
Twitter user Crypto Hamster quoted Grassnode data: “If we are in a bull market right now, SOPR shows that adjustments will come soon.”He pointed。
The influx says it all
If SOPR repeats past patterns it will please investors as it has shown great volatility so far.
Some commentators have pointed out that Bitcoin has historically not seen a long-term vertical price spike, and this bearish sentiment characterizes the drop from $ 42,000 to $ 30,000.
Bitcoin supporters argue that the involvement of institutional investors will be an antidote to panic selling and criticism from individual investors in a steep market. For example, Grayscale, the world’s largest crypto investment trust, has started accepting new investors after the New Year holidays, buying many times the amount of Bitcoin mined.
Businessman Alistair Milne said on 26twitter“Investors have been inundated with bargain purchases, and $ 1.31 billion (a record) of money has flowed into Bitcoin and crypto mutual funds,” he said.
He points out that 97% of this new inflow capital goes to Bitcoin. These moves are expected to lead to a bullish rally.
Translation / Editing Cointelegraph Japan
[ad_2]
