Will There Be Another Correction in Bitcoin Soon? CryptoQuant Analyst Explained!

Leading cryptocurrency BitcoinWhile compensating for the sharp declines it experienced last week, it continues its slow and quiet rise.

As BTC rises above $67,000 CryptoQuant The analyst warned investors to be careful about possible smoothing and volatility.

Here SOPR (Output Spent Profit Ratio) Commenting on the rate, the analyst pointed out that the SOPR rate has increased.

At this point, CryptoQuant analyst stated that the SOPR rate is a widely used measurement in determining peak points. He said that looking at historical data, the increase in the SOPR rate preceded the increase in the Bitcoin price and the price reached its peak before entering a correction.

Finally, the analyst stated that the rise in the SOPR rate meant that long-term investors could sell profits and warned investors against a potential correction in the coming days.

“The chart below shows changes in the SOPR (Output Output Profit Ratio) Ratio.

When the SOPR ratio rises, it indicates that long-term holders are making more profits than short-term holders. This emerges as a potentially useful metric in determining market peaks.

This rate has generally declined in previous years, but historically we observe patterns where the rise in the rate precedes the rise in Bitcoin price and peaks before the price enters a correction.

When we interpret the current Bitcoin pattern, a high and rising SOPR Ratio may indicate that the market’s upward momentum may be exploited by long-term investors and these investors may sell after the rise.

This means caution should be exercised regarding potential price corrections or increased volatility in the future.”

Long-term holders are taking profits

“Such patterns hint at the likelihood of long-term investors capitalizing on price ascents to realize profits.” – By @Woo_Minkyu

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— CryptoQuant.com (@cryptoquant_com) April 23, 2024

*This is not investment advice.