Is Bitcoin’s Upward Cycle Back? Key Insights Into The Latest Recovery
Is Bitcoin’s Upward Cycle Back? Key Insights Into The Latest Recovery Bitcoin (BTC) has rebounded to trade above $99,000 following its significant dip earlier this week. While the latest US Consumer Price Index (CPI) news appears to have contributed to this quick recovery, it has also drawn attention from analysts, who are closely monitoring key metrics to understand the market’s next move. A CryptoQuant contributor known as Crypto Dan recently provided insights into Bitcoin’s current market behavior. Highlighting the Short-Term Spent Output Profit Ratio (SOPR), Dan observed that the metric has shown a recurring pattern during correction phases. This pattern, he noted, typically dampens market optimism before a subsequent rebound. Despite the recent correction, signs point to the potential resumption of an upward cycle in the near future. Short-Term SOPR Analysis And What It Currently Suggests For BTC The SOPR metric measures the profitability of spent outputs relative to their realized value, providing insights into market participants’ behavior during price corrections. According to Crypto Dan, during corrections, the SOPR oscillates between red and green zones. The red zone signals increased profit-taking, often driven by whale activity, which can extend correction periods. Conversely, the green zone indicates reduced selling pressure, setting the stage for potential rebounds. Dan reveals that the SOPR currently shows a smaller volume of profit-taking compared to previous correction periods, such as the seven-month correction earlier in the year. Bitcoin Short-Term Spent Output Profit Ratio (SOPR). | Source: CryptoQuantThis trend suggests that the recent correction, which has lasted over a month, may be shorter in duration. Dan speculates that Bitcoin could resume its upward trend within the first quarter of 2025. However, he cautioned that short-term volatility remains a risk, with the possibility of further sharp drops before a sustained reversal. The analyst wrote: However, in the short term, there may still be one or two sharp drops that push SOPR below the yellow dotted line, potentially crushing market participants’ hope for a rally before the market reverses upward. As such, aggressive short-term trades should be approached with caution. Bitcoin Market Performance And Outlook Meanwhile, Bitcoin appears to now be making its way back above the $100,000 mark as the asset currently trades at a price of $99,494, at the time of writing marking a 2.7% increase in the past day. BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.comThis increase in Bitcoin’s price aside from being attributed to the underlying positive metrics on the BTC network can also be linked to the latest update on the US CPI. According to the latest reports, the US CPI rose by 0.4% in December—this news has resulted in the US Dollar seeing a notable plunge while other financial assets saw the opposite trend recording an uptick. Featured image created with DALL-E, Chart from TradingView Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. 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