bitcoin price movement in recent days. after halving event has left many investors wanting. Particularly, bitcoin-bull-run-past-its-prime-or-poised-for-a-correction-analyst-raises-eyebrows/” rel=”nofollow”>price data shows that the cryptocurrency failed to establish itself above $65,000 last week. At the time of writing, bitcoin is trading at $62,105, down 2.96% and 6.14% in the last 24 hours and seven days, respectively.
According to a CryptoQuant analyst, bitcoin's adjusted spent production profit ratio (aSOPR) still appears bullish, which could be a weak signal that the cryptocurrency's price is shifting to bullish momentum.
Current status of bitcoin
As things stand, bitcoin price could be on track to record a new monthly low with the risks of further disadvantages below $62,000. TO bitcoin-Short-term-SOPR-Indecisive” rel=”nofollow”>recent analysis Over the weekend, CryptoQuant analyst Phi Deltalytics noted that bitcoin's price trajectory shows indecision in the short term. His analysis is based on the SOPR index, one of the lesser known but very useful metrics for analyzing bitcoin.
SOPR measures the profit ratio of products spent, which are groups of transactions that represent the movement of coins. Phi analysis revealed an interesting indecisiveness with this metric. According to this metric, bitcoin's short-term Spent Production Profit Rate (SOPR) has entered a zone of indecision, which correlates with current market sentiment. However, the analyst also noted that the adjusted SOPR continues to move in a bullish direction, a confluence that warrants careful planning when entering the market.
What does this mean for bitcoin?
This discrepancy with the SOPR and its adjusted ratio means that many short-term holders are now trading bitcoin at a loss. Curiously, another CryptoQuant analysis seems to support this idea. Specifically, the long-term SOPR/short-term SOPR ratio is moving in favor of long-term holders, suggesting that long-term holders are making larger profits in contrast to short-term holders. Therefore, bullish momentum persists with the adjusted SOPR.
A better interpretation of this SOPR ratio is that the price of bitcoin has not been favorable for short-term holders under current market conditions. Furthermore, it suggests that the stagnation of bullish momentum may be attributed to some long-term holders withdrawing their holdings.
According to Phi Deltalytics, a reversal of the SOPR adjusted to a bearish signal would ultimately imply the possibility of a rapid downward shift in the price of bitcoin.
“The persistence of a bullish aSOPR amid faltering near-term SOPR trends gives rise to the possibility of a rapid downward shift once the aSOPR trajectory reverses,” the analyst mentioned.
When will the correction end?
bitcoin price has fluctuated between $60,000 and $70,000 since reaching a new all-time high. The long-awaited breakout above $74,000 now seems to be taking forever, and this lackluster action has led some analysts to believe that bitcoin could have done it. It reached its peak in the current market cycle.
However, time can only reveal the cryptocurrency's price trajectory in the coming months, particularly with the recent conclusion of another halving event. If halving history repeats itself, bitcoin could continue its price increase within the next nine months.
x/b5U3Qtvp/” alt=”Tradingview.com bitcoin Price Chart” width=”3286″ height=”1530″ loading=”lazy”/>
btc price struggles to hold $62,000 support | Source: BTCUSD on Tradingview.com
Featured image of Barron's, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
