Will Bitcoin observe a repeat of the rebound that took place after the crash back in March? Here’s what this on-chain metric suggests.
An on-chain metric called the Short-Term Holder SOPR indicates that Bitcoin may experience a rebound similar to what happened in March if it crosses above 1 in the coming days. The SOPR measures whether investors are selling their Bitcoin at a profit or loss. When the value is above 1, it means holders are moving their coins at a profit, while values below 1 suggest loss-taking behavior.
The focus is on the short-term holders, who purchased their BTC less than 155 days ago. The recent crash caused panic-selling at a loss among these holders, similar to what happened in March. However, the slowing down of loss selling suggests that a bottom may have been formed, just like in March when Bitcoin rebounded in spectacular fashion.
Currently, the Short-Term Holder SOPR is gradually rising, indicating a slowdown in loss selling. Whether this will lead to a rebound similar to March remains to be seen. Bitcoin is currently trading around $26,000, down 11% in the last week.
Key Points:
- If BTC Short-Term Holder SOPR crosses above 1, a rebound might occur.
- SOPR measures whether investors are selling at a profit or loss.
- Values above 1 imply profit-taking, while values below 1 suggest loss-taking.
- Short-Term Holder SOPR is relevant for analyzing the market.
- March crash and current crash both led to panic-selling at a loss among short-term holders.
Hot Take:
Based on the Short-Term Holder SOPR, there is a possibility of a rebound in Bitcoin similar to what happened in March. The slowdown of loss selling among short-term holders indicates a potential bottom formation. However, it remains to be seen whether Bitcoin will indeed experience a rebound. With Bitcoin currently trading around $26,000, the market is closely watching for any signs of recovery.
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