Bitcoin speculators panic sell at $92,000 in 'good time to accumulate'

New research from CryptoQuant indicates that short-term Bitcoin holders may be signaling a classic 'buy the dip' for the market.

Bitcoin market indicators are resetting as investors incur a 4% loss in BTC price each week.

In a Quicktake blog post on January 10, the blockchain analytics platform CryptoQuant reported a new opportunity to buy on dips.

Onchain data shows that Bitcoin is trending towards losses.

Market sentiment has been affected this month as volatility tends to decrease and buyers have been unable to reclaim and hold the $100,000 mark.

One of the signs of increasing capitulation among speculative investors—who are often more sensitive to short-term price volatility—is the decline in the spent output profit ratio (SOPR).

SOPR tracks the ratio of unspent transaction outputs (UTXOs) that were generated at a profit or loss relative to when the associated coins were last moved.

As a result, it provides an overview of investors' willingness to spend to make a profit or incur a loss, and thus analysts can gain better insight into prevailing sentiment trends.

Currently, the SOPR value for short-term holders (STH)—entities holding a certain unit of BTC for a maximum of 155 days—is below the breakeven point of 1.