New data confirms that Bitcoin bears (BTC) are “exhausted” and are even selling at a loss.
In a tweet published on Tuesday, Philip Swift, analyst of the Decentrader trading suite, identified an uptrend in the spent output profit ratio (SOPR).
Bitcoin bears are short on FUD
The SOPR, a classic metric for determining oversold periods in Bitcoin markets among other things, last week provided the first buy signal since July.
Last time, this signal saw BTC / USD hit local highs of $ 53,000 in the following weeks, and now many are hoping to see a rerun.
“We’ve seen more loss-making on-chain sales over the past few days,” Swift commented.
“It’s a bullish factor, especially after the aggressive sell-off this summer. The bears are increasingly exhausted. Soon the bulls will take control. “
The SOPR isn’t the only element in the Bitcoin market calling for a return to higher levels. Investors themselves are betting on continuation, adding to positions despite last week’s correction.
Others have reported that the ongoing drastic drop in available liquid BTC supply could contribute to the bullish momentum in the price.
MicroStrategy may act as a custodian for other companies
One group of investors that is certainly not selling is institutions, as MicroStrategy’s new purchase of 5,050 BTC announced on Monday highlights.
Related: Institutional traders come to Solana as demand for ETH and BTC falls
Commenting on the updated chart of BTC’s reserves in corporate balance sheets, analyst Willy Woo said the company could play the role of Bitcoin’s custodian for others.
“If you’re wondering why MicroStrategy is such a large holder, I believe public companies find it easier to buy a convertible debt instrument from MicroStrategy to gain exposure to BTC than to own the underlying asset. In my view, MicroStrategy owns BTC for many companies, ” has explained in a Twitter thread.
MicroStrategy’s total allocation currently exceeds 114,000 BTC, with the average purchase price of approximately $ 27,700, which is 40% below the current spot price.
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