An evaluation of Bitcoin’s on-chain indicators suggests that short-term traders have been capitalizing on profits recently.<\/p>\n
After surpassing its previous all-time high (ATH) of $69k, Bitcoin set a new ATH at $69,990, as per TradingView data sourced from Binance.<\/p>\n
Analysis of CryptoQuant data has revealed interesting patterns in the spent output metrics.<\/p>\n
According to CryptoCrypto, long-term holders have not been actively selling over the past month, indicating that a significant price correction may not be imminent.<\/p>\n
A CryptoQuant analyst examined Bitcoin’s bull and bear trends since January 2018 using the adjusted Spent Output Profit Ratio (aSOPR) metric, a variation of the spent output profit ratio.<\/p>\n
The aSOPR excludes UTXOs with an input-output span of less than an hour to eliminate noise from short-lived transactions, offering a clearer insight into BTC holder behavior.<\/p>\n
Research has shown that the average duration of growth periods typically spans 235 days, with the aSOPR being above 1 during these phases. Currently, we are 140 days into the cycle.<\/p>\n
This suggests that the next 100\u2013150 days could witness Bitcoin approaching a local peak, possibly the peak of this bull run.<\/p>\n
While not a definitive forecast or financial advice, this analysis warrants further scrutiny. CryptoCrypto amalgamated insights from the aSOPR with spent output age bands to assess selling behavior among short and long-term holders.<\/p>\n
Data reveals that long-term holders, particularly those holding 18-month to 5-year-old BTC, experienced a surge in spent outputs in mid-January, coinciding with a price correction from $49k to $38.5k.<\/p>\n
Although not every movement results in an immediate price response, historical patterns indicate a subsequent reaction after a delay. For instance, in July 2023, prices began to decline two weeks post a surge in spent outputs among older age bands.<\/p>\n
Over the past six weeks, there has been limited activity in spent outputs in the 18-month and older bands, despite an uptrend in aSOPR, indicating profit-taking by short-term traders.<\/p>\n
As such, concerns regarding a significant price correction akin to mid-January seem unwarranted at present.<\/p>\n
Data from Santiment on Weighted Sentiment reflects substantial positivity surrounding Bitcoin in recent weeks, aligning with its proximity to all-time highs.<\/p>\n
Noteworthy is the declining mean coin age, suggesting a distribution phase occurring across the network.<\/p>\n
Amidst the declining mean coin age and rising aSOPR, it appears that short-term holders are capitalizing on profits, likely involving younger coins based on spent output age bands, reassuring investors against anticipating a substantial price correction.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bitcoin’s Bull Run: Is the End Near? An evaluation of Bitcoin’s on-chain indicators suggests that short-term traders have been capitalizing on profits recently. After surpassing its previous all-time high (ATH) of $69k, Bitcoin set a new ATH at $69,990, as per TradingView data sourced from Binance. Analysis of CryptoQuant data has revealed interesting patterns in<\/p>\n","protected":false},"author":1,"featured_media":5117,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-5116","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/5116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/comments?post=5116"}],"version-history":[{"count":2,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/5116\/revisions"}],"predecessor-version":[{"id":5119,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/5116\/revisions\/5119"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media\/5117"}],"wp:attachment":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media?parent=5116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/categories?post=5116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/tags?post=5116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}