2024-12-03 02:00:14 by NewsBTC

A quant has explained how Bitcoin may be expected to see a strong rise in the coming months based on a golden cross that has occurred in this indicator. Bitcoin SOPR Has Just Witnessed A Bullish Crossover As an analyst in a CryptoQuant Quicktake post pointed out, the Bitcoin Spent Output Profit Ratio (SOPR) has shown a golden crossover recently. The “SOPR” here refers to an indicator that tells us whether the BTC investors are selling their coins at a profit or loss. This metric works by going through the transaction history of each coin being sold/transferred to see what price it was moved at last time. If this price is less than the current spot price for any token, its sale contributes to profit realization. Similarly, transactions involving coins of the opposite type imply loss realization is occurring. The SOPR sums up these profits and losses for the entire sell supply, and determines their ratio. When the value of this indicator is greater than 1, it means the average holder could be assumed to be selling their coins at a net profit. On the other hand, being under the mark implies that the overall market is realizing more losses than profits. Now, here is a chart that shows the trend in the 30-day and 365-day moving averages (MAs) of the Bitcoin SOPR over the past decade: Looks like the two lines have approached each other in recent days | Source: CryptoQuantAs is visible in the above graph, the 30-day MA of the Bitcoin SOPR fell under the 365-day earlier in the year, but recently, it has reversed its direction and has broken past the level. This increase naturally corresponds to the return of notable profit-taking in the sector following the latest rally of the cryptocurrency. In the chart, the quant highlighted the previous instances of this crossover. It would appear that each of these led into bullish price action for the asset. “After the golden cross appears, the market usually starts a strong rise within 2 months at the latest,” notes the analyst. Thus, it’s possible that Bitcoin could be gearing up for another run shortly. This latest bullish crossover in the Bitcoin SOPR is the second time this cycle that the pattern has appeared, so it’s possible that the run now would lead the asset to its final peak of the cycle. It remains to be seen, though, whether the crossover between the monthly and yearly averages of the indicator would prove to be bullish for BTC or not. BTC Price At the time of writing, Bitcoin is trading at around $95,000, down almost 3% over the last week. The price of the coin seems to have plunged over the past day | Source: BTCUSDT on TradingViewFeatured image from Dall-E, CryptoQuant.com, chart from TradingView.com Keshav Verma Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body. 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. Use information provided on this website entirely at your own risk.