A report released on January 25 by cryptocurrency data aggregator Glassnode indicated that Bitcoin’s adjusted exit profit percentage, or aSOPR, indicates that Further decline in prices will leave many investors in the red according to the last time their holdings moved down the chain.
Despite the gauge that fewer investors are sitting on paper earnings, Glassnode interprets the data as bullish., Announcing:
“For aSOPR to decline, investors must be willing to sell at a loss, which is unlikely given the current shape of the market. […] We have been looking for this reset to create some stability in the market and pave the way for the next bullish wave. “
Glassnode describes the indicator as a representation of the percentage of a coin’s profit based on the bitcoin price when it was last quoted on the chain.. Since aSOPR is a scale on the chain, BTC trading is not counted on central exchanges.
Although aSOPR should usually hover near 1, the intense bullish momentum in recent months has caused Bitcoin’s exchange rate to break above 1.15 at the end of December. And the first half of January.
However, During bullish market conditions, aSOPR values less than 1 are rejected as traders are reluctant to sell at a loss.
Glassnode noticed that the aSOPR graph indicated this The The current correction is coming to an end. From high to low for your last price, Bitcoin had corrected 31% when it dropped to just under $ 29,000 on January 22. At time of publication, Bitcoin was trading at $ 31,750.
On January 25, Glassnode also reported that 2.3 million BTC or 12.6% of Bitcoin’s traded supply was transferred on the chain while BTC traded above $ 30,000, indicating that activity is bullish:
“This is a big deal, given that BTC crossed $ 30,000 this particular year. It indicates that investors are injecting capital and thus confidence in the further price hike.”
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