After briefly going over $99,000 on Friday, Bitcoin’s price dropped sharply below $96,000 by the end of the week. Because of this, Bitcoin is still in a waiting period, with no clear sign of where its price will go next. However, a recent update from the blockchain analytics company Glassnode suggests there might be a chance for the price to go up soon.
Bitcoin At A Crossroads: Key Metric Set Could Decide Next Move
In a post on Friday, Glassnode shared that Bitcoin’s aSOPR is at 1.01, which is an important number showing that Bitcoin is in a sensitive market position. The aSOPR is a measure that looks at how much profit Bitcoin holders are making by comparing the price they bought Bitcoin for to the price they’re selling it at.
When the aSOPR is above 1, it means most Bitcoin holders are selling for a profit. If it’s below 1, it means they’re selling at a loss. So, with the aSOPR at 1.01, it shows that people are just barely making a profit on their Bitcoin transactions.
According to Glassnode, Bitcoin’s market is at a point where the aSOPR could move in either direction, which could have a big effect on the price. In 2021, when Bitcoin’s aSOPR reached 1.01, it was followed by a big price increase that pushed Bitcoin to a new all-time high of $64,800. A similar event happened in late 2023, which led to a surge in price to around $69,000.
Based on these past events, if Bitcoin’s aSOPR stays above 1.01, it could mean buyers are back in the market, showing that people are confident and expecting the price to go up. But if the aSOPR continues to drop and goes below 1.0, it would suggest that people are selling Bitcoin at a loss, which could lead to the price going even lower
BTC Price Outlook
As of now, Bitcoin is trading at $96,300, after dropping by 1.98% in the last 24 hours. At the same time, its daily trading volume has increased by 51.28%, showing more interest in the market. This rise in market interest during a price drop could mean that investors are either selling in a panic or that buyers are strongly accumulating Bitcoin.
Looking at the BTCUSDT daily chart, if Bitcoin breaks and stays above $99,000, it could signal the end of the current price holding pattern and lead to a steady price increase. However, if the price drops below $95,000, it could open the door for further declines, with some analysts suggesting a possible return to $76,000.
The post Bitcoin’s On-Chain Metric Goes Back to 1.01 — Here’s Why It Might Lead to a Price Increase appeared first on The Cryptoplay : All updates about Cryptocurrency worldwide.
