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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Sellers Incur Loss As SOPR Drops To 0.95 – A Sign Of Market Bottom?

Ash Tiwari
Ash Tiwari
3 months ago
3 mins read
bitcoin

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According to a recent Quicktake post by CryptoQuant analyst abramchart, short-term Bitcoin (BTC) investors are incurring losses, suggesting that the crypto market may have hit its bottom and a trend reversal could be on the horizon.

Has Bitcoin Bottomed?

Bitcoin experienced significant volatility over the past week, dropping from $96,000 on February 23 to $78,258 on February 27. However, it recovered most of its losses yesterday, rebounding to as high as $95,000.

Related Reading

bitcoin

As Bitcoin Sell Pressure Fades, Could A Local Bottom Be Forming? Analyst Explains

3 months ago

In the Quicktake post, abramchart highlighted the declining Spent Output Profit Ratio (SOPR) for BTC holders. For those unfamiliar, the SOPR measures the proportion of BTC wallets that have held the cryptocurrency for more than one hour but less than 155 days.

According to SOPR, any value greater than 1 indicates that short-term investors are selling at a profit. Conversely, a value below 1 suggests that short-term investors are incurring losses.

While a value under 1 may indicate bearish sentiment, it can also be seen as a sign of market capitulation, often followed by a potential trend reversal. The total crypto market cap surged by more than $200 billion yesterday, driven by US President Donald Trump’s announcement regarding the creation of a crypto reserve.

As of today, the SOPR sits at 0.95, the lowest it has been since August 2024 when BTC was trading within a consolidation zone around the mid-$50,000 range. The post concludes:

We have likely reached good accumulation zones for Bitcoin and are close to the bottom of the current wave.

SOPR
Source: CryptoQuant

BTC Showing Signs Of Trend Reversal

While predicting crypto markets can be difficult, some indications suggest that Bitcoin may be on the verge of a trend reversal after prolonged selling over the past month.

Related Reading

bitcoin

Is Bitcoin Showing Early Signs Of Bullish Divergence? Analyst Explains

3 months ago

For example, during its potential local bottom at $78,258, BTC partially filled a long-standing CME gap between $78,000 and $80,000. CME gaps often act as price magnets, and once filled, BTC typically moves in the opposite direction.

Additionally, seasoned crypto analyst Ali Martinez pointed out that BTC has reached its most oversold level since August 2024. Martinez suggested that the high selling pressure on BTC might be nearing its end, potentially signaling a trend reversal.

In related news, Andre Dragosch, European Head of Research at Bitwise, noted that despite the market pullback, BTC is flashing a massive contrarian buy signal, presenting an attractive risk-reward opportunity at current prices.

On the other hand, Geoff Kendrick of Standard Chartered predicted that BTC may still experience further downside before resuming its bullish momentum. At press time, BTC is trading at $89,826, up 5.3% in the past 24 hours.

bitcoin
BTC trades at $89,826 on the daily chart | Source: BTCUSDT on TradingView.com
Featured image from Unsplash, Charts from CryptoQuant and TradingView.com
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Ash Tiwari
Ash Tiwari

Ash Tiwari

Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.

Read more

Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.

In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.

A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.

When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.

Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.

Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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