Are Bitcoin Drops Permanent: According to Analyst, This Indicator Signals a Buying Opportunity - Coin Bulletin

According to the CryptoQuant analyst, short-term corrections in Bitcoin can provide buying opportunities for investors.

According to the data conveyed by CryptoQuant analyst “MAC_D”, Bitcoin's failure to break the $100,000 resistance and retracing to $92,500 was due to the excessive overheating of leverage ratios. The open positions and estimated leverage ratio reaching annual highs led to the interpretation of a %10-20 correction as a natural market movement.

When chain data is analyzed, cyclic metrics such as MVRV, NUPL, and Puell Multiple indicate that Bitcoin is still in a bull market and maintains its upward potential.

However, it is crucial to identify accumulation opportunities accurately during these corrections. According to the analyst, the 'Short Term SOPR' (Spent Output Profit Ratio) metric plays a critical role at this point.

Short-Term SOPR is a metric that covers Bitcoin investors who hold the asset for more than one hour but less than 155 days. This value is used to understand the profit or loss situation of investors; values above 1 indicate profit, while values below 1 indicate loss sales.

On November 21st, the short-term SOPR value rose to 1.096, indicating that some investors were selling their profits. Historical data shows that periods when short-term investors sell at a loss often result in price recoveries for Bitcoin.

Therefore, moments when the corrections deepen and lead short-term investors to sell at a loss can be considered as buying opportunities.

MAC_D advised traders to set an alarm when the SOPR metric reaches negative values and use it as a potential buy signal.