The value of Bitcoin has declined to the $44,000-$45,000 level for the third time in the past week.
Some investing analysts have stressed that an uptick in miners’ selling as the cause of the recent drop in price.
But the third test of this support level might
The SOPR reveals whether spent outputs are losses or profits at the moment of transaction. This important metric turned negative for the first time since Sept. 2020. To make it clear, investors are moving BTC at a small loss, signaling that profit-taking has stopped.
Meanwhile, Philip Swift, the co-founder of Decentrader also highlighted the SOPR crash.
“The SOPR is reset. This means that people are selling at a loss,” he said, adding: “This is a huge ‘buy the dip’ signal.”
The last time this happened, Bitcoin was priced near $10,000. At that time, this number was a key roadblock for Bitcoin to move higher. Since that time, the price has skyrocketed by more than five fold to highs of $58,000.
Nevertheless, many investors are staying cautious as the market goes into the month of March, which has historically been bad for cryptocurrencies, and markets overall.
“I believe March might be slow with low confidence in overall markets but I am bullish on Bitcoin and expect it to go higher over the next few months,” said Swift in comments.