According to the latest twitter&utm_medium=sns&utm_campaign=quicktake&utm_content=woominkyu” target=”_blank” rel=”nofollow”>knowledge According to a CryptoQuant analyst, bitcoin could be poised for a notable price correction. This possibility of a price correction is based on major bitcoin metrics such as Adjusted Spent Output Profit Ratio (ASOPR), indicating a notable implication for bitcoin's trajectory.
Understanding the role of ASOPR in predicting btc corrections
The ASOPR, a key indicator in the cryptocurrency market, measures the profit ratio of products spent by comparing the value at which the coins were purchased with the value at which they were sold.
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According to the CryptoQuant analyst, when this ratio exceeds 1, it suggests that coins are selling at a profit, which often correlates with bullish market conditions.
However, a critical threshold observed in historical data is when the ASOPR approaches 1.08. At this point, the market tends to change, indicating a possible start of a correction phase.
This pattern has been consistent throughout several market cycles, providing a valuable tool for investors to assess the health of the market. For example, when the ASOPR steadily rises above 1 but approaches the 1.08 mark, investors might consider it an opportune time to evaluate their positions ahead of potential crises.
The CryptoQuant analyst noted in particular:
Considering past cases where similar patterns were observed, there is a possibility that the current situation could follow the same (downward) trend.
Another critical component that the analyst mentioned in his btc market analysis is the 200-day moving average (MA), widely regarded as a barometer of the long-term market trend.
This indicator helps smooth price data by creating a constantly updated average price, which can be instrumental in confirming the general direction of the market. A rising 200-day MA suggests a long-term bullish trend, while a falling one could indicate a bearish market.
According to the chart shared by the analyst, bitcoin's performance below this key moving average currently confirms the cautious stance suggested by the ASOPR.
With the price hovering around $64,000, a 14% drop from its recent high, the convergence of these indicators suggests that the market could still be in a phase of reassessment and potential adjustment.
Continued bitcoin Stagnation
The prediction of the above metric is quite evident, as the value of bitcoin continues to decline despite significant positive developments within the industry.
Earlier today, Standard Chartered Plc crypto-trading-stanchart-launches-spot-btc–eth-desk” target=”_blank” rel=”nofollow”>Announced the launch of a new trading desk for bitcoin and ethereum, marking a significant step towards cryptocurrency spot trading by one of the world's leading banks.
Additionally, the Winklevoss twins, founders of the Gemini crypto company, have publicly supported Donald Trump's presidential campaign. bitcoin-trump-2024-06-20/” target=”_blank” rel=”nofollow”>donating $1 million for every btc for being a “pro-bitcoin” candidate.
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However, these developments have not caused any significant upward movement in the price of bitcoin, which has seen a 1.1% drop in the last 24 hours to $63,935.
Analyst Ansem predicts that bitcoin may not see a significant price increase until later this year, anticipating that it will remain between $58,000 and $60,000 for some time.
Featured image created with DALL-E, TradingView chart
