NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: XRP Price Predictions: AI Forecasts $4.40 By March 2026, Analysts Target Up To $6
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: XRP Price Predictions: AI Forecasts $4.40 By March 2026, Analysts Target Up To $6

Why This Bitcoin Bearish Divergence Could Spell Doom For BTC Rally

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 9:07 am
3 mins read
Bitcoin Bear

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.

A quant has explained how this bearish divergence in Bitcoin on-chain data can lead to a short-term correction in the price.

Bitcoin Short-Term Holder SOPR Has Been Slowing Down Despite Price Going Up

As explained by an analyst in a CryptoQuant post, a gap has been forming in the purchasing power of short-term holders and the BTC price. The relevant indicator here is the “Spent Output Profit Ratio” (SOPR), which tells us whether investors in the Bitcoin market are selling their coins at a profit or at a loss right now.

When the value of this metric is greater than 1, it means the overall market is realizing some amount of profit currently. On the other hand, values below the threshold suggest the average holder is seeing some loss at the moment. Naturally, the indicator at exactly equal to 1 implies the investors are just breaking-even on their investment.

Related Reading

Ethereum Bullish

Ethereum Active Addresses At Highest Since May 2021, Good News For ETH?

2 years ago

The “short-term holder” (STH) group is a Bitcoin cohort that includes all investors who bought their coins less than 155 days ago. The STH SOPR thus measures the profit ratio of selling being done by these holders. To properly assess the behavior of this group, the analyst is using a “rate of change” (ROC) oscillator for the indicator. Here is a chart comparing this momentum oscillator with the BTC price over the last few months:

Bitcoin Short-Term Holder SOPR

Looks like the metric has been going down in recent days | Source: CryptoQuant

As the above graph shows, the ROC of the Bitcoin STH SOPR had been in deep red when the FTX crash took place, suggesting that these investors capitulated during it and realized a large amount of loss. However, as the BTC price has slowly improved from the lows, the ROC has become green. This implies that the STHs who bought during the lows have been selling for profits, leading to a rising SOPR.

Bitcoin has continued to see an uptrend recently, but strangely, the STH SOPR ROC has been dropping off. This could be a sign that not many STHs were able to buy during these lows, hinting that their purchasing power is low at the moment. If they had been buying through this rally, they would have continued to harvest more and more profits as the price goes up, but that has clearly not been the case.

Related Reading

Bitcoin

Bitcoin Price Crystal Ball – What Happens To BTC After Christmas 2022?

2 years ago

Such a divergence also formed in the relief rally seen earlier in the bear market, as the quant has marked in the chart. “Last time, this situation led to a bearish correction,” notes the analyst. “If this alignment repeats, then this time, Bitcoin may correct to the $16,500-$17,000 range.”

Bitcoin Price Chart

BTC surges up | Source: BTCUSD on TradingView

At the time of writing, Bitcoin’s price floats around $17,700, up 5% in the last week.

Tweet123Share196ShareSend
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.

Read more

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.

Close

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.

Related News

百家樂教學|新手入門到進階策略的完整指南

百家樂長年被視為線上娛樂城與實體賭場中最受歡迎的紙牌遊戲之一,因規則簡單、節奏快速、勝率穩定,成為許多玩家的首選。隨著線上博弈平台普及,百家樂的玩法、機率與策略逐漸被系統化整理,形成一套可學習的技巧。...

newsbtc 1 hour ago
Bitcoin bear market warning news

Bitcoin Signals Bear Market: One Thing Could Flip It, Says CryptoQuant CEO

Bitcoin may be sliding into a new bear phase unless fresh macro liquidity – particularly through spot ETFs – returns...

Jake Simmons 1 hour ago
Ethereum

Ethereum Back At $3,200 As Sharks Show Strong Accumulation

Ethereum has witnessed a recovery surge recently as on-chain data shows the shark-sized investors have been participating in strong buying....

Keshav Verma 1 hour ago
Load More

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.

Related News

Bitcoin Pauses

Bitcoin Coils Near Highs as Bulls Defend Gains Ahead of Resistance

Aayush Jindal 26 minutes ago

微策略比特幣買盤驟降至135枚:CryptoQuant警告2025熊市來臨、BTC恐回落至7萬美元區間

Ter Yim 46 minutes ago
XRP

Fed Turns On The Liquidity Hose, XRP Ready To Ignite, Investor Claims

Christian Encila 51 minutes ago

Premium Sponsors

Press Releases

  • アルトコイン 市場を牽引する注目プロジェクトまとめ ― 本日12月4日の最新動向

    アルトコイン...

    10 hours ago
  • ドージコイン 今後:0.15ドル突破で強気転換が明確に

    ドージコイン...

    10 hours ago
  • リップル 今後:ETFへの機関資金流入が加速、XRPは急伸局面に入る可能性

    リップル...

    10 hours ago
  • 仮想通貨 プレセール:SEC が Rule 13f-2 を終結させ、市場で注目される購入候補とは

    仮想通貨 プレセール:SEC が Rule 13f-2...

    10 hours ago
  • 仮想通貨 おすすめ:ブラックロックがAIとステーブルコイン領域へ動く中で注目すべき資産とは

    仮想通貨...

    11 hours ago

Newsletter

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.

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.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 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.