A quantitative analyst explained that based on the golden cross appearing in this indicator, Bitcoin is expected to see a strong rise in the next few months.
Recently, a quantitative analyst revealed an exciting prediction after in-depth research on Bitcoin's market indicators: Bitcoin is expected to see a strong rise in the next 1-2 months. This prediction is not unfounded but is based on the golden cross phenomenon observed in the Bitcoin Spent Output Profit Ratio (SOPR), a key indicator.
It is reported that SOPR is an indicator that reflects the profit and loss status of BTC investors. It determines whether these tokens are sold at a profit or loss by tracing the transaction history of each BTC that is sold or transferred. When the value of SOPR is greater than 1, it means that ordinary investors are selling their BTC at a net profit; when it is less than 1, it indicates that the overall losses realized in the market exceed the profits.
Recently, the SOPR indicator has shown a remarkable change: the 30-day moving average (MA) successfully broke through the 365-day MA, forming what is known as a 'golden cross.' This change has historically indicated upward trends in Bitcoin prices. Therefore, quantitative analysts have high hopes for the occurrence of this golden cross, believing it may once again lead Bitcoin to new heights.
From the above chart, we can see that the 30-day MA of Bitcoin SOPR had briefly fallen below the 365-day MA earlier this year but then changed direction and recently successfully broke through this key level. This change is closely related to the recent rebound and profit-taking phenomena in the cryptocurrency market. Analysts point out that the emergence of this golden cross phenomenon usually indicates that market sentiment is shifting from pessimism to optimism, and investor confidence is gradually recovering.
It is noteworthy that this is not the first time a golden cross has appeared in the SOPR indicator. In fact, throughout history, each occurrence of a golden cross has been accompanied by a rise in Bitcoin's price. Therefore, quantitative analysts have reason to believe that this time will not be an exception. They predict that within 1-2 months after the golden cross appears, the Bitcoin market is likely to experience a wave of strong upward momentum.
Of course, market trends are always full of variables. Although the emergence of the SOPR golden cross provides strong support for Bitcoin's rise, it does not mean we can be complacent. Investors still need to closely monitor market dynamics and cautiously assess market trends.
Additionally, it is worth noting that the price of Bitcoin was about $95,000 at the time of writing, down nearly 3% from last week. This drop may have caused some concern among investors. However, in the long run, the occurrence of the SOPR golden cross undoubtedly injects more confidence and momentum into Bitcoin's future trend.