Despite expectations of a new year recovery, Bitcoin (BTC) has experienced an unstable performance since the start of the year, leaving many investors questioning its next move.
Regardless of the lack of significant momentum, recent information from analysts has brought attention to key trends and opportunities for BTC to accumulate. These insights provide an in-depth understanding of the structure of the Bitcoin market and provide strategies for navigating its current environment.
Short-Term Losses Show Chances of Accumulation
CryptoQuant’s QuickTake forum contributor, MAC.D, highlighted the ongoing trend in a post titled “Short Term SOPR Below 1: A Good Time to Accumulate.”
The analysis emphasized that the current market conditions, although challenging for short-term investors, may represent an ideal time for long-term accumulation.
Short term SOPR below 1, good time to accumulate
“As short-term investors feel more pain, it often presents better opportunities to accumulate.” – In @MAC_D46035
Some details pic.twitter.com/BOUJjBFzGp
– CryptoQuant.com (@cryptoquant_com) January 10, 2025
MAC’s analysis focuses on the Short-Term Spent Output Profit Ratio (SOPR), which is a metric that reflects the sentiment of investors holding Bitcoin for less than six months. Currently at 0.987, the metric suggests that these investors are selling Bitcoin at a loss.
Historical patterns show that such behavior often precedes market recovery, making these periods ideal for accumulation.
The analysis also identified broad cycle indicators, such as Market Value to Realized Value (MVRV), Net Unrealized Profit/Loss (NUPL), and the Puell Multiple. These metrics show that the ongoing market correction does not signal the end of Bitcoin’s bullish cycle.
MAC argued that as short-term investors continue to sell at a loss, long-term investors can profit by acquiring Bitcoin at reduced prices. Mac commented:
If there is a further decline in the current price, smart investors will probably accumulate coins that are being sold cheaply by short-term investors. Therefore, selling coins at this time may be a very unwise decision.
Bitcoin Market Performance and Outlook
So far, Bitcoin has not been able to make any major upward movements, instead, the asset has continued to decline gradually placing a 12.9% drop away from its all-time high.
At the time of writing, BTC is trading at $92,905 bringing its weekly performance to a drawdown of around 4%. Regardless, a technical opinion from Javon Marks, a well-known crypto analyst reveals that Bitcoin may now be preparing for a major rally towards $140,000.
$BTC (Bitcoin) has set up another Bull Flag pattern and a measured breakout move could call for a MASSIVE MOVE to prices close to $140,000.
– JAVON
The featured image was created with DALL-E, a Chart from TradingView