In the world of cryptocurrency, Bitcoin is a household name. As the most widely recognized and valuable digital asset, it’s no surprise that investors and traders are always on the lookout for indicators that can help predict the future of its price movements. One such indicator is the SOPR ratio, and according to recent data by CryptoQuant, Bitcoin bottomed out at a SOPR ratio of 0.57 last November.
The SOPR ratio is a measure of long-term holders’ SOPR divided by short-term holders’ SOPR. In simple terms, it measures the profit or loss of Bitcoin investors who bought their coins at a specific price level. Using a 30-day moving average, analysts have noted that at every previous bottom for Bitcoin, the value of this indicator ranged between 0.5 and 0.6 before rising again.
In the current market cycle, the value of the SOPR ratio went to 0.57 last November, when the price of Bitcoin was at a level of $15,790. This suggests that the bottom may have already been reached, and we are now on an upward trend. It’s worth noting that Bitcoin’s price has since risen to over $50,000 in recent months, supporting the theory that the bottom is behind us.
Whale Bitcoin Addresses on the Decline
The data is supported by Santiment, which notes that the number of existing whale Bitcoin addresses is continuing to decline. There were 2,011 such addresses in February, compared to 2,266 one year ago today. This trend supports the theory that investors who bought Bitcoin at lower prices are holding on to their coins rather than selling them, which could lead to a further increase in the value of the asset.
Of course, it’s important to remember that cryptocurrency markets are notoriously volatile and unpredictable. While the SOPR ratio and other indicators can provide insight into Bitcoin’s price movements, there are always unexpected events that can cause rapid price changes. Nonetheless, the data from CryptoQuant and Santiment is certainly encouraging for Bitcoin investors and traders, and suggests that the asset may continue to increase in value over the coming months.
Read more:
- More Than $60.75 Billion Worth Of Bitcoin Has Been Inactive For Over A Decade
- El Salvador: IMF Issues Statement On Bitcoin Risks In 2023 Economic Developments And Outlook