According to CryptoQuant analyst, Bitcoin’s short-term corrections could present buying opportunities to investors.
According to data shared by CryptoQuant analyst “MAC_D”, Bitcoin’s failure to break the $ 100,000 level and falling to $ 92,500 is associated with overheating of leverage ratios. Open positions and estimated leverage ratios reaching annual peaks led to a correction of 10-20% being seen as a natural movement of the market.
Looking at on-chain data, cyclical metrics such as MVRV, NUPL, and Puell Multiple indicate that Bitcoin is still in a bull market and maintains its upside potential.
However, when corrections occur during this period, it becomes important to identify the right accumulation opportunities. According to the analyst, the "Short-Term SOPR" (Spent Output Profit Ratio) metric plays an important role at this point.
Short-Term SOPR is an indicator that captures investors who have held Bitcoin for more than an hour but less than 155 days. This metric helps understand whether investors are making a profit or a loss; values above 1 indicate profit-taking, while values below 1 indicate loss-taking. Short-term SOPR rose to 1.096, indicating that some investors were making profit-taking. Historical data shows that periods when short-term investors sold at a loss usually result in Bitcoin price recoveries.
Therefore, moments when corrections deepen and force short-term investors to sell at a loss should be evaluated as potential buying opportunities.
MAC_D advised traders to set alarms when the SOPR metric drops to negative values and use it as a buy signal.