Bitcoin
Bitcoin traders should be ready to sweep the market unless BTC…
Bitcoin’s potential to reverse in the upward direction remains high. However, an illiquid market could be a stumbling block.
- The $25,000 to $30,000 range still serves as an opportunity zone to buy BTC.
- Market participants have the buying potential provided the ecosystem remains liquid.
After tracking the adjusted Spent Output Profit Ratio (SOPR) for six weeks, analyst Tomáš Hančar concluded that a perfect opportunity may be presenting itself for Bitcoin [BTC] traders.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
For a while, traders have been standing on the edge since BTC decided to send the market into unexpected pain. At press time, BTC’s price stood at $25,964, and Hančar opined that the opportunity could be to accumulate Bitcoin between $25,000 to $30,000.
Here to provide opportunities
For context, the aSOPR is calculated as the value of spent outputs at the spent time(realized value) divided by the USD value of spent outputs at the created time(value at creation).
Values greater than 1 imply that participants are selling at a profit. Conversely, values less than 1 suggest letting go at a loss. With respect to the metric, Hančar explained,
“Apparently, we’re closer to being done (pic 1, the aSOPR div itself), which I see as the perfect opportunity forming.”
Oftentimes, the price movement of Bitcoin sets the tone for the entire cryptocurrency market, and the current situation is no exception. So, a chance to accumulate BTC may also mean a chance to
scoop up a number of altcoins.Another metric the analyst pointed to is the Net Unrealized Loss (NUL). The NUL is the sum of UTXOs being in loss with the price difference between created and destroyed.
Hančar mentioned that he initially expected the NUL to drive Bitcoin toward the upside since June. But since that did not happen, the downtrend offers an entry point to those looking out for one.
Source: CryptoQuant
The market has the power
Lastly, the analyst considered the Stablecoin Supply Ratio (SSR) compared with the Relative Strength Index (RSI). The SSR is defined as a ratio of the market cap divided by the market cap of all stablecoins.
The increasing trend of the metric implies that buying power is slowing down. Conversely, a decreasing SSR suggests a rising status of the stablecoin buying power. At the time of writing, the SSR decreased, implying the latter.
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Hančar opined that this was yet another confirmation that it was time to load up BTC bags. In doing this, he referred to the FTX collapse and banking crises that occurred earlier in the year. He noted that,
“This to me is yet another confirmation that the time to load up the proverbial leverage truck is likely closer than you may think.”
In conclusion, the analyst mentioned that BTC’s potential to become bullish was high. So, a reversal from the current trend could be in place unless the market becomes illiquid.
