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Is Bitcoin finally catching its breath? Signs are emerging that the relentless selling pressure may be nearing exhaustion, mirroring patterns seen at previous short-term bottoms over the last couple of years. Could this be the calm before the next surge?
Bitcoin’s short-term investors felt the burn this week. CryptoQuant data reveals the Short-Term Holder SOPR, a key profit indicator, dipped to a chilling 0.94. Translation? Recent Bitcoin buyers were selling at a loss as prices struggled to break past the $90,000 barrier, lingering instead in the $80,000 range.
(CoinDesk Data)
When the reading dips below 1.0, it’s the newcomers throwing in the towel. These moments, like clockwork, often mark the bottom before prices bounce back with surprising speed.
History rhymes. Echoes of early 2023, late 2023, and mid-2024 resonate in this month’s SOPR dip. Each time, short-term holders panicked, shedding coins into the abyss of sharp selloffs. But from the ashes, stability rose – liquidity shifting from trembling hands to those with diamond grips. Is this just a repeat performance, or is this time different?
Instead of a market meltdown, CryptoQuant sees a strategic shakeout. Recent losses? Not a sign of decay, but a pressure release valve as bold players trim their sails. This isn’t a collapse of faith, but a calculated repositioning for the long haul.
Bitcoin’s recent tumble wasn’t a global phenomenon; it was a U.S. market meltdown. While investors stateside panicked, pushing Bitcoin below $90,000, a curious thing happened: equities bounced back on the scent of weakening consumer data, hinting at a possible December rate cut and suggesting the dip was a fleeting overreaction, not a worldwide loss of faith.
BTC Touched $89,000! But the party was brief. Monday night saw a surge fueled by a global market rally, only for Bitcoin to retreat back toward $87,000 as Wall Street called it a day.
According to FxPro’s Alex Kuptsikevich, crypto’s recent rally is merely a shadow of Wall Street’s gains, mimicking U.S. equities so closely it suggests the market lacks the intrinsic power to ignite its own independent surge.
“The latest price bump? Likely a temporary head-fake in a seven-week slide. Forget the champagne until we smash through $88,000 –that’sthe green light for a real recovery.”
Beneath the surface turbulence, the market searches for solid ground. The rapid exodus of leveraged positions, signaled by a dramatic plunge in derivatives open interest, suggests a necessary cleansing before any true rebound can begin.
The relentless pressure on funding rates has finally relented, with perpetual swaps now hovering precariously close to zero after a week bathed in negative premiums. For those with a sense of crypto history, this sudden calm may be more unsettling than comforting; whispers are circulating that this eerie stillness often heralds a sharp, short-term price reversal. Is this the eye of the storm?
Is the tide turning? Whispers from the Fed hint at easier policies, global markets are breathing easier, and now, Bitcoin’s Spent Output Profit Ratio (SOPR) is holding steady. Could this stabilization be the market’s subtle signal that the sell-off is finally losing momentum?
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