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Economic Data Shakes Bitcoin: Opportunity is knocking for smart investors! - Coin Bulletin
Although the early rally of Bitcoin (BTC) has stalled due to economic data and profit-taking, data tracking investor behavior indicates that current price levels may offer opportunities for new entries.
On-chain data shows that Bitcoin's Spent Output Profit Ratio (SOPR) has risen to 0.987 as of Friday. This ratio indicates that investors who bought Bitcoin in the last six months sold at a loss. Historically, such scenarios are often seen before price recoveries and signal a buying opportunity.
SOPR compares the values of when these coins moved and when they were spent again by analyzing the spent Bitcoin outputs. Short-term SOPR focuses on coins held for less than 155 days, especially. Being below 1 in value generally indicates a market bottom where investors panic sell or a buying opportunity.
Other Cycle Indicators
Other indicators assessing market cycles suggest that Bitcoin has not yet reached its peak. Metrics such as Market Value to Realized Value (MVRV) and the Puell Multiple suggest that Bitcoin is still in a bullish cycle. CryptoQuant analyst Mac_D notes that short-term investors' losses create savings opportunities for smart investors.
According to Mac_D, if the price falls further, coins that are cheaply sold by short-term investors could be picked up by long-term investors.** Therefore, selling right now can be quite a risky move.