A quantitative analyst explained that based on the golden cross observed in this indicator, Bitcoin is expected to experience a strong surge 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 experience a strong surge 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 can reflect 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 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 its value is below 1, it indicates that the overall losses realized in the market are greater than the profits.
Recently, the SOPR indicator experienced a striking 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 previously signaled a bullish trend in Bitcoin prices. Therefore, quantitative analysts have high hopes for this golden cross, believing it may once again lead Bitcoin to new heights.
From the above chart, we can see that Bitcoin's SOPR 30-day MA had once dipped 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 in the cryptocurrency market and the profit-taking phenomenon. Analysts point out that the emergence of this golden cross 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 phenomenon has appeared in the SOPR indicator. In fact, throughout history, each emergence of a golden cross has been accompanied by an increase 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 welcome a strong bullish trend.
Of course, market trends are always full of uncertainties. Although the emergence of the SOPR golden cross provides strong support for Bitcoin's rise, it does not mean we can rest easy. Investors still need to closely monitor market dynamics and cautiously assess market trends.
Additionally, it is worth noting that the price of Bitcoin was approximately $95,000 at the time of writing, down nearly 3% from last week. This decline may cause some investors to feel concerned. However, in the long run, the emergence of the SOPR golden cross undoubtedly injects more confidence and momentum into Bitcoin's future trend.