The SOPR says: “Buy the dip”
a classic buy signal, the negative SOPR implies that traders have sold their BTC at a loss and therefore the market is in an oversold condition. The last time this metric went negative was on July 20, just before the price of Bitcoin took off from around $ 30,000 to over $ 50,000..
Philip Swift, analyst of the Decentrader trading platform, has today commented on Twitter:
“Yesterday the Spent Output Profit Ratio turned negative, due to the fact that on-chain speculators were selling at a loss. It paints an image very similar to the funding rates of the last few months, in which there have been many forced sales. buy-the-dip opportunity. “
Great news for Bitcoin bulls
As Cointelegraph reported, experts argue that Tuesday’s crash was likely caused by overleveraged traders, whose positions were cascaded when some younger whales started selling.
Related: Solana surpasses $ 200, thanks to an impressive 25% daily rise
As the market cleared these overly indebted traders, optimism quickly returned to the industry. The on-chain monitoring resource Whalemap also has expressed a positive opinion on SOPR data:
“The SOPR at around 1 in a bull market is good news.”
In some private comments shared with Cointelegraph, the Whalemap team made it clear that we may see some lateral movement before a real upward momentum.
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