Bitcoin (BTC) savers waiting for the bull market to return may not have to wait very long, according to a popular indicator.
Bitcoin’s profit-on-output (SOPR) data shared by on-chain analytics resource Glassnode point out that the current correlation in BTC price is almost over.
BTC price correlation should end “soon”
SOPR tracks the ratio of profitable cryptocurrencies in motion, in other words, whether investors sell for profit or loss.
When the indicator is above 1 point and starts to decline, it shows that sellers are selling their savings with various profit margins. When SOPR sees 1 point, it is reset, the sellers are selling all they can sell, which reduces the downward pressure and allows Bitcoin to rise again.
As the SOPR indicator approaches 1 point again, market participants hope that the sales experienced last week will come to an end.
Popular Twitter account CryptoHamster, in his post on tuesday “If we are currently in the bull market, according to the SOPR indicator, the correction is not over yet, but it will be over soon,” he summarized.
Money flows into the market
Bitcoin supporters pointed to institutional engagement versus individual investors’ sales during the decline. Grayscale, for example, consistently bought Bitcoin after the Christmas feast and received much more BTC than was produced during the same period.
Entrepreneur Alistair Milne, In a Twitter post “$ 1.31 billion (new record) was transferred to Bitcoin and crypto investment products last week as investors rushed to buy at the bottom price,” he summarized.