Bitcoin’s price continues to rise, now nearing the $100,000 milestone. As with any asset price rally, profit-taking is inevitable, and signs of realization are already being observed in the current uptrend.
The Short-Term SOPR (Spent Output Profit Ratio) measures profits realized on coins held for a period of more than 1 hour but less than 155 days. For this analysis, short-term investors are defined as those holding Bitcoin for less than 155 days.
Historically, when applying a 30-day moving average to the Short-Term SOPR, it has been observed that during bullish trends, short-term SOPR tends to reach around 1.02 before profit-taking occurs. Each time this level has been reached, Bitcoin’s price has experienced a pullback or correction.
Currently, the 30-day moving average of the Short-Term SOPR has reached 1.02, suggesting that Bitcoin’s price, while close to $100,000, could face a short-term correction. However, if capital inflows into the market continue and investors remain eager to buy Bitcoin, this historical pattern could be overridden, leading to a strong breakout beyond $100,000.
If Bitcoin’s price does experience a correction, it may present an excellent entry opportunity for new investors who have yet to enter the market.
Written by Avocado_onchain
