Bitcoin’s current price is above $73,000, but will this upward trend continue? A recent analysis by CryptoQuant, a cryptocurrency analytics firm, sheds light on the potential future price of Bitcoin.
The analysis focuses on a metric called Short-Term Holder Return on Investment Ratio (SOPR), which helps determine whether short-term Bitcoin holders are profiting or losing on their investments. The SOPR measures the profit margin of Bitcoin holders who have held their coins for a period ranging from one hour to 155 days. A value above 1 indicates that a higher percentage of coins were sold at a profit, while a value below 1 suggests that more holders sold at a loss.
According to CryptoQuant, the current Short-Term Holder SOPR stands at 1.017%. This indicates that many short-term holders are making some profit, although not excessively so. In previous market cycles, a SOPR value around 1.03% has been seen as a signal of overheating, suggesting that Bitcoin’s price may still have room to rise before reaching that point.
The analysis suggests that if the Bitcoin price continues to surpass recent highs and the SOPR value increases further, the market could witness the start of a more significant rally. However, it’s essential to consider the potential risks posed by the upcoming US presidential election, as its outcome could impact asset prices, including cryptocurrencies.
Please note that this article does not provide investment advice. If you’re interested in investing in cryptocurrencies, you can register with Binance exchange using this link to receive a 20% commission discount.
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