Shopping on the floor? Important signal for the price of bitcoin after 5 monthsadmin
Over the past week, the price of Bitcoin has three times managed to defend the $ 44,000 to $ 45,000 support area. According to experts, this area is very important and can act as a price floor.
According to the Coin Telegraph, the price of Bitcoin fell again from $ 44,000 to $ 45,000 yesterday. This is the third time in the last 7 days that bitcoin has touched this area.
As shown in the chart, yesterday at the Bitstamp exchange, the price of Bitcoin fell below $ 44,000 and then began its recovery and now stands at more than $ 46,000. Is.
According to some analysts, the increase in miner sales caused the price of bitcoin to fall yesterday.
Fortunately, the third price return to this range has probably been a spark of hope for market buyers. Glassnood data show that the SOPR index has seen a “complete recovery.”
This indicator shows whether the expenditures of the accounts at the time of the transaction were in profit or loss. This important criterion entered the negative range for the first time since September 2020 ; In other words, investors are now transferring their bitcoins at an average loss with little loss. According to Glasnood, this indicates a reduction in traders’ earnings. Glassnode analysts say:
Overall, yesterday we saw $ 234 million in realized chain losses. This is the lowest level since April 2020.
Philip Swift, co-founder of the Decentrader trading platform and creator of the Gold Rate coefficient method, was among those who pointed to the sharp decline in SOPR.
According to him, this event and its coincidence with the recovery of capital derivatives in the derivative markets is interpreted as a potential sign of a change in trends. Explaining the reasons for this claim, he said that earlier this incident had started a new upward trend. Swift continued:
SOPR is now recovered (green on the chart), which means that the seller’s addresses are now selling at a loss to Bitcoin. This is a “buy on the floor” signal in the bullish market. At the same time, derivatives market capitalization has recovered and is rising.
The last time SOPR entered the green zone was five months ago. At that time, the price of each bitcoin unit was in the range of $ 10,000. At the time, this range was the main obstacle to starting the upward trend of this digital currency. Since five months ago, the price of Bitcoin has jumped fivefold to a peak of $ 58,000.
With March approaching, traders are being cautious. Historically, March has been a downturn for both traditional markets and the digital currency market. Swift said in a private statement:
I think March will be slow and volatile in traditional markets, but overall I have a bullish outlook for bitcoin and expect strong growth over the next three months.
Many traders believe that $ 44,000 to $ 45,000 should be looked at. Leading analyst Willy Woo believes that the $ 45,000 area is a strong support and that lower prices in this area will be accompanied by heavy buyers.
“The current state of the digital currency market is entirely dependent on Bitcoin’s performance in maintaining the $ 45,000 area,” said Santiment researchers.