• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
Bitcoin

Bitcoin Market At Decision Point: aSOPR Retests Crucial Level

Hououin Kyouma by Hououin Kyouma
1 month ago
in Bitcoin
Reading Time: 3 mins read

The Bitcoin market may be close to a decision point as on-chain data shows the Adjusted Spent Output Profit Ratio (aSOPR) is retesting the 1.0 level.

Bitcoin aSOPR Has Declined Towards A Value Of 1.0 Recently

According to the latest weekly report from Glassnode, the BTC market had shifted towards a profit-dominated regime back in January. The “aSOPR” is an indicator that tells us whether the average investor is selling their Bitcoin at a profit or at a loss currently.

The “adjusted” in aSOPR comes from the fact that this metric has been adjusted for filtering out transactions/sales of all coins that were done within only one hour of the previous transaction/purchase. The benefit of making this restriction is that it removes all noise from the data that wouldn’t have had any noticeable implications for the market.

When the value of this indicator is greater than 1.0, it means the total amount of profits being harvested by the investors is more than the losses right now. On the other hand, values of the metric below the threshold suggest the market as a whole is realizing some losses at the moment.

The 1.0 level itself naturally serves as the break-even mark, where the total amount of profits becomes equal to the losses.

Now, here is a chart that shows the trend in the Bitcoin aSOPR over the last few months:

Bitcoin adjusted SOPR

The value of the metric seems to have been above the 1.0 mark in recent days | Source: Glassnode's The Week Onchain - Week 17, 2023

Historically, the aSOPR 1.0 level has been quite important for Bitcoin, as it has represented the mark where the transition between bullish and bearish trends has taken place.

During bear markets, the indicator generally stays under this level, as investors naturally realize large losses. The mark acts as resistance in such market conditions, meaning that any attempts to break above it usually end up in failure.

Related Reading: Bitcoin ‘ESR’ Continues To Show Bullish Divergence, Will Price Follow?

On the contrary, the 1.0 level acts as a support for the price during bullish periods, making sure that the indicator stays in the profits zone. Both these patterns can also be seen in action in the above graph, as the 2022 bear market saw the metric being stuck in the zone below 1.0, while the rally that started in January has observed it is in the green area.

There was an exception last month, however, when the Bitcoin aSOPR sharply plunged below the 1.0 mark due to a sharp plunge in the price. It wasn’t long, though, before the metric (and also the price) returned back toward the bullish trend, implying that it was only a temporary anomaly.

Recently, as the asset’s price has once again been going down, the indicator has also declined toward the 1.0 level. “With aSOPR currently retesting the break-even level of 1.0, this puts the market close to a decision point,” explains Glassnode.

Related Reading: What’s Behind The Recent Bitcoin Drop? Here’s What On-Chain Data Says

It now remains to be seen whether the retest will be successful, and this level will act as support for the price, or if a break below will take place, possibly bringing with it more decline for the cryptocurrency.

BTC Price

At the time of writing, Bitcoin is trading around $27,300, down 10% in the last week.

Bitcoin Price Chart

BTC has seen some sharp decline recently | Source: BTCUSD on TradingView
Featured image from Maxim Hopman on Unsplash.com, charts from TradingView.com, Glassnode.com
Tags: bitcoinBitcoin aSOPRbtcbtcusd
Tweet123Share196ShareSend
Hououin Kyouma

Hououin Kyouma

Kyouma is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Kyouma has been writing for many years, first as a hobbyist and later as a freelancer. He obtained a bachelor's in physics in 2022 and is planning on starting a master's in the same field in the near future. Kyouma is enthusiastic about the cryptocurrency industry and holds an active interest in on-chain analysis. His hobbies include gaming, anime, and football. You can find Kyouma on Twitter at @Kyouma29.

Related Posts

Bitcoin (BTC)

JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000, Here’s Why

2 days ago
Bitcoin

Bitcoin Exchange Inflows Mostly Coming From Loss Holders, Weak Hands Exiting?

2 days ago
Bitcoin Bear

Bitcoin Bearish Signal: NUPL Finds Rejection At Long-Term Resistance

3 days ago
Bitcoin

Bitcoin Hangs At $26,200: Why This Is A Crucial Support Level

3 days ago
Prominent Crypto Trader Peter Bradit Drops Shocking Bitcoin Price Prediction

Prominent Crypto Trader Drops Shocking Bitcoin Price Prediction

6 days ago
Bitcoin

How Does Current Bitcoin Rally Compare With Historical Ones?

6 days ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • Unlocking Crypto Giants: Caged Beasts Eyes The Best Crypto...

    6 hours ago
  • Expert Opinion: Dogetti Outshines Render Token As An...

    12 hours ago
  • The NFT Revolutionaries Binance, Decentraland and...

    12 hours ago
  • Comparative Analysis Of Top Play-to-Earn Crypto Projects...

    13 hours ago
  • Big Eyes Coin Raises Over $40 Million: Prepare for Alt...

    13 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.