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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Bullish Signal: 30MA STH-SOPR Returns Above 1 After 4 Months

Keshav Verma
Keshav Verma
3 years ago
3 mins read
Bitcoin

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The Bitcoin STH-SOPR (EMA-30) has now returned above a value of one for the first time in four months, a sign that could prove to be bullish for the price of the crypto.

Bitcoin Short-Term Holder SOPR Has Broken Above 1 Recently

As pointed out by an analyst in a CryptoQuant post, the BTC STH-SOPR is currently forming a pattern that has historically been bullish for the coin.

The “Spent Output Profit Ratio” (or the SOPR in short) is a Bitcoin indicator that tells us whether coins in the market are selling at a profit or at a loss right now.

The metric works by looking at the history of each coin being sold and checking whether the price it last moved at was less than the current one or more than it.

When the value of this indicator is above one, it means investors are, on average, selling their Bitcoin at a profit right now.

Related Reading | Possible Timelines For Bitcoin To Hit $100k: Why CEOs See Bullish Signs

On the other hand, SOPR values below one imply overall losses are being realized in the BTC market at the moment.

A modified version of this indicator takes into account only those investors who held their coins for less than 155 days before selling them. This group of investors is called the short-term holders (STH).

Now, here is a chart that shows the trend in the Bitcoin STH-SOPR (EMA-30) over the last few years:

Bitcoin STH-SOPR

Looks like the value of the metric has risen above one recently | Source: CryptoQuant

As you can see in the above graph, the Bitcoin STH-SOPR (EMA-30) seems to have followed a pattern over the last five years.

It looks like during bearish periods, the indicator has always had a value less than one. While bullish trends have occurred while the metric has had a value greater than one.

Recently, the STH-SOPR has broken above 1 once again after staying below the threshold for nearly four months since December of 2021.

Related Reading | Data Shows Bitcoin Investors Afraid To Take Risk As Leverage Remains Low

If the pattern from before holds true now as well, then this breakout may suggest that Bitcoin will rally towards at least a local top soon.

However, such an uptrend may not last too long. In the chart, there are two regions where the metric did break above 1 and the price rallied some, before continuing the bearish trend and the STH-SOPR returned to loss values.

BTC Price

At the time of writing, Bitcoin’s price floats around $46.1k, down 2% in the past week. The below chart shows the recent trend in the value of the coin.

Bitcoin Price Chart

BTC's price seems to have moved sideways over the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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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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