Bitcoin SOPR Falls to 0.95 Indicating Short-Term Losses
Short-term investors in Bitcoin (BTC) are currently facing losses, suggesting a potential market bottom and possible trend reversal. Key points include:
- BTC fell from $96,000 on February 23 to $78,258 on February 27 but rebounded to $95,000 recently.
- The Spent Output Profit Ratio (SOPR) for BTC is at 0.95, indicating more short-term investors are selling at a loss, the lowest since August 2024.
- The total crypto market cap increased by over $200 billion, partly due to US President Donald Trump’s announcement of a crypto reserve.
Indicators hint at a trend reversal:
- BTC partially filled a CME gap between $78,000 and $80,000, often associated with price reversals.
- Analyst Ali Martinez noted BTC is at its most oversold level since August 2024, indicating declining selling pressure.
- Andre Dragosch highlighted a contrarian buy signal for BTC despite recent pullbacks.
- Geoff Kendrick from Standard Chartered anticipates further downside before a bullish recovery.
As of now, BTC is trading at $89,826, up 5.3% in the last 24 hours.
