Bitcoin’s SOPR Nears Critical Level—Is a Deeper Correction Ahead?
Bitcoin’s price continues to decline, and now trading at a price of just over $81,000, a significant drop in January’s all-time high (ATH). At the time of writing, BTC is priced at $81,086, reflecting 1.7% of the past 24 hours, but still showing 2.3% Reduction in the past week.
Continuous corrections have raised concerns among investors about whether assets will recover or enter the extended merger phase. While there is no clear reason behind Bitcoin’s ongoing price movements, crypto analyst Darkfost highlights one Interesting relevance Between BTC and Nasdaq
According to DarkFost, Bitcoin is currently more relevant to the S&P 500 compared to the NASDAQ index, suggesting macroeconomic factors and Broader market sentiment Playing a role in the performance of BTC.
This correlation suggests that external market trends, such as changes in the U.S. stock market and monetary policy decisions, may affect the price direction of Bitcoin.
Market cycles for short-term holders SOPR and Bitcoin
Amid Bitcoin price fluctuations, crypto analyst Kripto Mevsimi owns examine Short-term holders spend output margin (SOPR) EMA (155), which provides insights into market cycles and investor behavior.
According to Mevsimi, Sopr EMA (155) has peaked recently and is now declining, indicating that short-term holders are aware of less profits. This trend may indicate that the market is entering the merger phase.
Analysts further explained that if SOPR approaches 1 and serves as support, it may indicate a healthy market reset before the next potential uptrend. However, if Sopr drops below 1, it may indicate an increase in sales pressure, which may lead to Further market weaknesses.
Mevsimi stressed that for the bullish trend of Bitcoin, the trend began in early 2023, and to continue, the SOPR should stabilize at around 1 and then trend upward again. The inability to maintain this level may indicate that the market dynamics have changed, causing Bitcoin dynamics to change Long-term growth trajectory question.
Whale accumulation continues to continue in market corrections
While short-term price action remains uncertain, another crypto analyst, Cauecomanty, has Highlight Major accumulation trends for large Bitcoin holders. Bitcoin Whale has increased its stake in its shares by more than 65,000 BTC over the past 30 days, reflecting strong buying pressures from major network players.
Cauecomy noted that this accumulation is still happening despite the wider market corrections, suggesting that whales are absorbing supplies rather than selling their shares.
This behavior is in stark contrast to miners and exchanges, which often offload BTC to maintain liquidity. in the case of Current accumulation mode It lasted for weeks and it could be similar to the consistent buying pressure seen between November and December, which helped the Bitcoin rally in late 2023.
Feature images created with DALL-E, charts for TradingView
