Current State of Bitcoin
Bitcoin’s price has struggled to stay above $65,000 since the halving event. It’s currently trading around $62,000, down slightly from the previous day.
SOPR Ratio: A Bullish Indicator
According to CryptoQuant analyst Phi Deltalytics, Bitcoin’s Adjusted Spent Output Profit Ratio (aSOPR) remains bullish. This means that, on average, people are still selling their Bitcoin at a profit.
Short-Term Indecision
However, the short-term Spent Output Profit Ratio (SOPR) is showing some indecisiveness. This suggests that short-term traders are uncertain about the market direction.
Long-Term Holders vs. Short-Term Holders
The long-term SOPR to short-term SOPR ratio favors long-term holders. This means that long-term holders are selling their Bitcoin at higher profits than short-term holders.
Interpretation
The discrepancy between the SOPR and aSOPR indicates that short-term traders are selling at a loss. This could be due to long-term holders cashing out their profits.
Potential Reversal
If the aSOPR turns bearish, it could signal a potential downward shift in Bitcoin’s price. However, this is not yet the case.
When Will the Correction End?
Bitcoin’s price has been ranging between $60,000 and $70,000 for some time. It’s unclear when this correction will end, but history suggests that Bitcoin could continue its surge in the coming months.
