Tag: Bitcoin Bottom

Is The Bitcoin Bottom In? Here’s What SOPR Data Says

by NEWSBTC

Bitcoin has continued its rally breaking above $42k today, making many wonder whether $33k was the bottom. Here’s what the SOPR data says about it.

Bitcoin Short-Term Holder SOPR Starts Turning Green Again

As explained by an analyst in a CryptoQuant post, the current BTC SOPR pattern may look similar to that around the bottom formation back in July of last year.

The “Spent Output Profit Ratio” (or SOPR in short) is an on-chain indicator that tells us whether investors are currently selling at a profit or at a loss.

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The metric works by checking the history of each coin being sold on the chain to see what price it was last moved at. If the Bitcoin price before was less than the current one, then the coin is considered to have been sold in profit.

When the SOPR has values greater than 1, it means holders have been selling at a profit on average. On the other hand, values of the indicator below the threshold imply investors sold at a loss overall during this period.

Related Reading | Bitcoin Leverage Ratio Suggests More Decline May Be Coming

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Naturally, SOPR values exactly equal to one mean the market broke even on average. Now, here is a chart that shows the trend in this Bitcoin indicator over the last year:

Bitcoin SOPR

Looks like the LTH SOPR had a large spike recently | Source: CryptoQuant

As you can see above, there are separate graphs for two versions of the Bitcoin SOPR indicator. They are the short-term holder (STH) SOPR and the long-term holder (LTH) SOPR.

Now, looking at the chart, it seems like the STH SOPR has been below one for a while now, but has now started to just turn green again. Also, the LTH SOPR had a huge spike recently.

Related Reading | Bitcoin Begins Bounce From 7-Year Bull Trend Line — Is This The Bottom?

The quant has pointed out that this trend of the two metrics seems to be similar to what happened during the May-July 2021 bear period. The bottom formation took place then, so if there is any pattern here, the bottom may be in now as well.

However, the analyst also notes that the reason behind the large LTH SOPR spike this time looks to be because of the Bitfinex hack, where a large number of dormant coins were moved. On the other hand, the last time it happened was because of a bear trap. Whether this is a false signal this time because of it remains to be seen.

BTC Price

At the time of writing, Bitcoin’s price floats around $42.7k, up 15% in the last seven days.

Bitcoin Price Chart

BTC's price rallies up | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Bitcoin On-Chain Demands Suggests That The Market Has Reached Its Bottom

by NEWSBTC

Bitcoin on-chain analysis can be a good way to try to guess where the market is headed. The market tends to repeat itself with metrics looking the same before a bull or a bear rally, thus making this data a pretty good indicator of what’s to come. Analyst Willy Woo uses this same data to demonstrate a pattern that occurs before the bull rally, the criteria which are being met once again.

Start Of A Bull Run?

In a recent string of tweets, analyst Willy Woo presents data from on-chain analysis that points to the bitcoin dump having reached its bottom. According to him, “Price in relation to on-chain demand from both speculative and hodl category of investors are now both at peak oversold levels.” Woo points out that the last time that something like this had happened was when bitcoin reached its bottom following the COVID crash.

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The analyst further outlines the times where this has happened in the past. Going as far back as 2012, he points out the same had been the case in February of that year. What followed had been the memorable 2021-2013 bull run that saw bitcoin gain more popularity among investors.

Related Reading | Bitcoin Halving To Bring The Subsequent Crypto Frenzy

Fast forward to 2015 and the same had been the case in January of that year. This time, the on-chain metric spelled the bottom of the bear market that had begun previously in 2014, putting an end to the onslaught.

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If Woo is right and the on-chain metric continues the way it has historically, then bitcoin may very well have reached the bottom, suggesting that this is the end of the downtrend. However, there is no telling if this is actually the case given that bitcoin had recorded back-to-back bull rallies in 2021.

Bitcoin On The Charts

Bitcoin has lost almost 50% from its all-time high of $69k which it hit in November of last year. This has however not affected the profits of the majority of holders. The digital asset remains one with the highest volume of holders that remain in profit after the market crash.

Related Reading | El Salvador Chivo Bitcoin Wallet Relaunch To Serve 4 Million Users

According to data from IntoTheBlock, 60% of all bitcoin holders are still in profit at current prices. It is important to note that the cryptocurrency was subject to massive sell-offs when investors panicked that the downtrend will continue. Most however have still kept their highly profitable status, with only 35% of all holders currently losing at market prices.

Bitcoin price chart from TradingView.com

Bulls struggle to pull BTC up as bears take hold | Source: BTCUSD on TradingView.com

The majority are long-term holders and indicators point to investors still being very bullish on the digital asset despite the downtrend. With its current growth curve, it is expected that the cryptocurrency will see 1 billion holders in the next four years, making it a highly sought-after asset.

Featured image from Bitcoin News, chart from TradingView.com

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What A Decline Under $35,511 Would Mean For The Price Of bitcoin

by NEWSBTC

Bitcoin has lost its footing at $37,000 and has now slipped into the $36,000 territory, sending the market into another frenzy of fear. It comes on the back of widespread speculations that the digital asset had indeed hit its bottom. But with the current trend, the digital asset may end up sliding down further. To this end, Fundstrat analyst Mark Newton has laid out the possibilities for bitcoin if it declines further than $35,511.

What Happens Below $35,511

Technical analyst Mark Newton has put forward a bullish outlook for bitcoin if it falls below this point. He told Bloomberg that a decline under this would inevitability lead to a test of $32,950. Also adding that the price of the digital asset moving above $40,000 would be an important point for the bulls.

Related Reading | Double Threat: Bitcoin And Ethereum, Start Of Bear Market Or Bullish Consolidation?

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However, the market has seen massive sell-offs close to this price point in recent times that Newton’s predicted point for the bulls is yet to be hit. With the digital asset suffering so many price dips in such a short period of time, bitcoin looks more likely to fall below $35,511 than it is to give bulls a much-needed pull above the $40,000 point. The Fundstrat analyst explained that without reaching this point, the asset would remain on a downward trend.

“Until $40,000 is exceeded on a daily close, it remains in a downward sloping pattern, and it’s tough to rule out further weakness technically speaking,” the analyst said.

This reflects the cautious way of thinking that Newton is using to look at the market. At a point like this, there is no way to tell for sure what the market will do, so being wary is the best cause of action.

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Bitcoin Bottom Is Not In

The technical analyst also touched on the bitcoin bottom, sharing thoughts that deviated from current trends. Newton said that the bitcoin bottom is not in yet. Instead, the analyst believes that the bottom will come in over the next few months.

Related Reading | Bitcoin Halving To Bring The Subsequent Crypto Frenzy

As for the recovery recorded following the market crash, he explained that it is only temporary. Furthermore, does not believe that it is an indicator that there will be an intermediate-term rally. “This minor two-week bounce might still be premature in expecting a new intermediate-term rally has begun,” Newton added.

Bitcoin price chart from TradingView.com

BTC trending at $36K | Source: BTCUSD on TradingView.com

Bitcoin’s price still remains firmly in the $36,000 territory, suggesting that the short-term rally might be over. Bearish sentiment is the order of the day with market sentiment falling deep into extreme fear.

Bitcoin is trading at $36,800 at the time of this writing.

Featured image from CCN.com, chart from TradingView.com

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Bounce Incoming for Bitcoin (BTC), According to Crypto Analyst Michaël van de Poppe – Here’s His Target

by Dailyhodl

Popular crypto strategist Michaël van de Poppe says that Bitcoin (BTC) is due for a heavier bounce even amid the bearish sentiment surrounding the digital asset markets.

In a new strategy session, Van de Poppe tells his 164,000 YouTube subscribers that he believes the Bitcoin bottom is not yet in despite BTC’s bounce from the 90-day low of $32,990.

“The higher timeframes are still unchanged. We’ve had a beautiful bounce and no conclusion of an actual bottom taking place here yet or that we’ve switched the trend. That’s more important… We might be getting into a phase right now that we’re actually finding a temporary bottom. However, this will most likely require a period of consolidation and will take time before we can actually start reversing.”

Although Van de Poppe says that Bitcoin has yet to carve a definitive bottom, he highlights that BTC bulls can still ignite a relief rally.

“In this case, the level to watch is the level at $35,800. We’ve been bouncing from it. But if we’re not able to crack through $36,500 at this stage, it seems very likely that we’re going to have that test [at $34,000]… If, however, we get back above $36,500 and are holding this $35,800 level, that is going to result in further upwards momentum.”

At time of writing, Bitcoin is trading at $36,880, above Van de Poppe’s key level to watch.

As for the crypto strategist’s target for the bounce, Van de Poppe tells his 565,000 Twitter followers that Bitcoin can rally to its range resistance at $40,700.

“Great move of Bitcoin. Ready for a test at $38,000 and possibly $40,700 after the reclaim of the range.”

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Source: Van de Poppe/Twitter

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Large Investors Will Create a Bottom for Bitcoin (BTC), According to Host of InvestAnswers

by Dailyhodl

The anonymous host of InvestAnswers says a pool of large investors will help form a bottom price level for Bitcoin (BTC).

With BTC trading at $36,727.19 at time of writing, down more than 13.5% in the past seven days, the InvestAnswers analyst tells his 405,000 YouTube subscribers that Bitcoin will bottom out at $30,000.

“Volume is light but as we’ve been saying, there are thousands and thousands and thousands of investors and fund managers and hedge funds, etc., that have been looking at this space for the longest time.

And they know that this is a finite asset. They know it’ll be a flight to safety. They need somewhere to park their money that’s safe.

Fiat debases. Gold doesn’t go anywhere. Stock market’s too shaky.”

The analyst highlights that buyers with significant purchasing power are moving in to purchase Bitcoin at a discounted price.

“What we saw today was kind of interesting. Big volume came in, big buyers came in, big blocks.

But you could tell as well from looking at the on-chain data and the wallet purchases, these are people buying $2-8 million [worth of Bitcoin] a pop.

They were not retail investors, but they were grabbing what they could.”

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Featured Image: Shutterstock/KHIUS/Natalia Siiatovskaia

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Galaxy Digital CEO Mike Novogratz Says Bitcoin Has Hit The Bottom

by NEWSBTC

Bitcoin has been on a downward streak since the last quarter of 2021, and this has spilled into the new year. As January goes into full bloom, it has come with discouraging movements for investors as over $500 billion has been wiped off the market. This has sent bitcoin’s price down to the dreaded $40,000 price range.

One question that remains in the mind of investors is, has the market seen the bitcoin bottom? Billionaire Mike Novogratz attempts to answer this as he puts forwards his thoughts on the issue and predicts the bitcoin bottom.

Related Reading | TA: Bitcoin Key Indicators Suggest A Strengthening Case For More Downsides

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Bitcoin Should Bottom Out Between $38,000 to $40,000

Galaxy Digital CEO Mike Novogratz has always been an active voice in the crypto space and has at various times given his thoughts on the market. This time around, Novogratz sat down with CNBC’s Squawk Box, where he predicted where the bottom of the current bitcoin downtrend will be.

The billionaire CEO placed the floor of the current downtrend at $38,000 which he does not see bitcoin going under. Currently, bitcoin’s lowest during the dips have been $40,680, from which the digital asset has since recovered. But if Novogratz’s predictions are anything to go by, then the market may see another dip before there is a full-blown recovery trend.

Bitcoin price chart from TradingView.com

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BTC price tumbles down to $41,475 | Source: BTCUSD on TradingView.com

The CEO gives his reason for this bottom as institutional investors taking advantage of the low prices to get into the digital asset. I” know big institutions who are going through their process to put positions on. They’re going to see those as attractive levels to buy,”  Novogratz said.

“On the charts, $38,000, $40,000 feels like where we should bottom,” he added.

Inflation Will Drive Growth

Continuing on, Novogratz shares more regarding his stance on this predicted bitcoin bottom. One of those has been inflation.

Those who have been following the markets know that rising inflation rates have led to increasing concerns among investors who have begun to look for alternatives to gold to serve as an inflation hedge. Bitcoin has naturally become the option for these investors.

The Fed believes that inflation rates will begin to come down, but the CEO explained that if this does not go as planned, then “all bets are off.”

Related Reading | Melania Trump Congratulates Bitcoin On 13th Anniversary Of Bitcoin Genesis Block

Digital Galaxy, on which Novogratz heads as CEO, has made a name for itself in the space as being a big bitcoin proponent. The company currently holds over 12,000 bitcoins, making it one of the companies with the largest bitcoin holdings in the world.

Mike Novogratz himself also has a personal stake in cryptocurrencies, revealing that he holds about 85% of his net worth in cryptocurrencies, which at the time translated to up to $4.8 billion held by the billionaire in crypto.

Featured image from Stock Hax, chart from TradingView.com

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Bitcoin (BTC) $ 42,448.37 3.00%
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