Bitcoin Bull Run Not Over Yet? This Ratio Has Just Seen A Golden Cross
26 Outubro 2024 - 7:00AM
NEWSBTC
Data shows the ratio between two Bitcoin on-chain metrics has
recently formed a pattern that has historically been bullish for
the asset’s price. Bitcoin LTH/STH SOPR Ratio Has Crossed Above Its
90-Day MA Recently In a new post on X, CryptoQuant author Axel
Adler Jr has discussed about the recent trend in the Bitcoin SOPR
Ratio. The “Spent Output Profit Ratio” (SOPR) is an indicator that
tells us about whether the Bitcoin investors as a whole are selling
at a profit or loss. When the value of this metric is greater than
1, it means the average holder is making BTC transactions at a net
profit. On the other hand, it being under the mark implies
loss-taking is dominant on the network. Related Reading: Dogecoin
Surges 16%, But Here’s What DOGE ‘Risk Indicator’ Says About Rally
The SOPR Ratio, the actual metric of interest here, keeps track of
the ratio between the version of the SOPR specifically for
short-term holders and that for long-term holders. Short-term
holders (STHs) and long-term holders (LTHs) are the two main
divisions of the Bitcoin userbase made on the basis of holding
time. The cutoff between these cohorts is 155 days, with investors
who hold past this mark moving from the STHs to the LTHs. Now, here
is the chart shared by the analyst that shows the trend in the
Bitcoin SOPR Ratio and its 90-day moving average (MA) over the
history of the cryptocurrency: As displayed in the above graph, the
Bitcoin SOPR Ratio has seen a surge recently, which suggests the
LTHs have been ramping up their profit-taking compared to the STHs.
This trend is something that has historically been witnessed during
bullish periods, since the LTHs are resolute entities who tend to
amass large profits by the time the bull run hits in full swing.
The STHs are by definition the holders who bought within the past
five months, meaning that their cost basis lies somewhere around
the prices that BTC was trading at inside this window. Thus, their
profits are never as big as the LTHs, who often have their cost
basis close to bear market lows. This is why the ratio blows up
toward the LTHs in bullish periods. With the latest increase, the
SOPR Ratio has reached a value of 1.8 and has surpassed its 90-day
MA. In the chart, the CryptoQuant author has highlighted the past
instances of this crossover. It would appear that this pattern has
generally proven to be bullish for Bitcoin. Related Reading: Is It
Too Late To Accumulate Bitcoin? What This Indicator Says Naturally,
the profit-taking from the LTHs can be a concern, but as is
apparent from the graph, the cycle has usually only been at risk of
topping out when the ratio has broken above a value of 7. Thus,
there could still be plenty of room to run for Bitcoin, with demand
potentially absorbing the LTH profit-taking until the same extreme
levels as the past cycles. BTC Price At the time of writing,
Bitcoin is trading at around $68,200, up more than 1% over the last
24 hours. Featured image from Dall-E, CryptoQuant.com, chart from
TradingView.com
Bitcoin (COIN:BTCUSD)
Gráfico Histórico do Ativo
De Set 2024 até Out 2024
Bitcoin (COIN:BTCUSD)
Gráfico Histórico do Ativo
De Out 2023 até Out 2024