- Bitcoin’s uptrend was ongoing, as profit-taking volume declined.
- BTC has gained over the past day by 1.76%.
Over the past 48 hours, Bitcoin [BTC] has experienced a strong upswing on its price charts. Over this period, BTC has surged from a low of $89164 to a local high of $97657.
With Bitcoin experiencing significant gains over the past two days, the crypto community is left talking about its prospects.
CryptoQuant analyst Dan has suggested that Bitcoin’s upward cycle is still ongoing, citing the short-term SOPR.
Bitcoin’s upward cycle is still ongoing
In his analysis, Dan posited that Bitcoin’s aggressive short-term trading is a no-go because the upward cycle is still ongoing.
Source: CryptoQuant
According to him, short-term SOPR shows a consistent pattern. During market corrections, it shifts from red circles to green circles. This shift dampens market participants’ optimism about potential price rallies, only for the market to rebound.
Significantly, the higher the red circle, the more it suggests profit-taking by major whales, leading to deeper or longer correction phases.
However, current market conditions compared to March 2024 show a considerably smaller profit-taking volume. This suggests that this correction period is likely shorter than the previous one, which took seven months.
Since the current correction has already lasted more than a month, there’s a high likelihood of the upward trend resuming in Q1 2025.
On a short-term basis, BTC might experience one or two sharp drops that could push short-term SOPR to decline before experiencing another sustained uptrend. Therefore, aggressive short-term trades are risky and require extended caution.
What do BTC charts suggest
While the above analysis offers a promising outlook, it’s essential to check other market indicators.
According to AMBCrypto’s analysis, Bitcoin is still experiencing strong buying pressure, as market participants remain bullish.
Source: CryptoQuant
For starters, Bitcoin’s taker-buy-sell ratio has surged to remain above 1 over the past two days. When this remains above 1, it suggests that there are more buy orders compared to sell orders for BTC.
As such, buyers are dominating the market, reflecting a strong accumulation trend.
Source: Cryptoquant
Additionally, Bitcoin is experiencing a recovery in the number of active users and overall participants. This is evidenced by a sustained drop in the NVT ratio for the last 4 days.
When the NVT ratio drops it suggests strong demand for the network, suggesting strengthening market fundamentals.
Source: CryptoQuant
Bitcoin’s SOPR has remained above 1 for the past six days. When SOPR stays above 1, it signals strong market sentiment, where traders are willing to sell and reenter the market at higher levels. Profit-taking is not discouraging buyers as demand remains robust.
– Read Bitcoin (BTC) Price Prediction 2025-26
Simply put, Bitcoin is still experiencing strong demand as buyers continue to enter new positions, reflecting strong bullish sentiments.
If bulls take control of the market, BTC could reclaim $98,800 and then attempt $100,000. However, a correction could see the crypto drop to $96,560.
