Bitcoin (Bitcoin) Speculators have been selling at a loss, and analysts said that this week offers gold buying opportunities.
data It shows that Bitcoin’s Spending Output Profit Rate (SOPR) was negative for the first time in six weeks on Wednesday.
SOPR says “buy on dips”
A sort of Classic buy signal, Negative SOPR means that sellers have been selling BTC at a loss. Therefore, the oversold market is ripe for long-term holders to profit from cheap tokens.
The last time SOPR was negative was on July 20, just before Bitcoin took off and recovered $50,000.
Philip Swift, an analyst at the trading platform Decentrader, said: “As speculators on the chain sold at a loss, the output profit margin spent yesterday became negative (green).” Summarize Sent to Twitter fans on Thursday.
“Draws a picture that is very similar to the financing rate in recent months, because there was a lot of forced selling in the summer, and now this is more like a bargain-hunting opportunity.”
The “good news” for Bitcoin bulls
As Cointelegraph Report, The study emphasized that the BTC price drop on Tuesday came from over-leveraged traders who could not withstand the selling pressure from young whales.
After the market cleared these participants, optimism for more sustainable price increases returned.
At the same time, for the on-chain monitoring resource Whalemap, SOPR data also hints at the possibility of higher-level regression.
“In an uptrend market, SOPR of about 1 is good news,” the staff Comment On the current reading of the indicator.
In a private comment on Cointelegraph, the Whalemap team added that “a little bit sideways” should first become a feature of the market before there is an upward move.