Despite the expect a revival in the new yearBitcoin (BTC) has experienced a fairly volatile upside performance since the beginning of the year, leaving many investors questioning its next move.
Regardless of the lack of great momentum, recently vision from analysts have drawn attention to key trends and accumulation opportunities for BTC. These views provide a deeper understanding of the structure of the Bitcoin market and offer strategies for navigating the current environment.
Short-term losses indicate accumulation potential
A contributor to the QuickTake CryptoQuant platform, MAC.D, pointed to a continued trend in a post titled “Short-term SOPR below 1: Good time to rally.”
The analysis confirmed that current market conditions, although challenging for short-term investors, may represent an opportune time for long-term accumulation.
Short term SOPR under 1, good time to collect
“As short-term investors experience more pain, it often presents better opportunities to rally.” – With @MAC_D46035
More details
https://t.co/gNGhFcp7DB pic.twitter.com/BOUJjBFzGp
— CryptoQuant.com (@cryptoquant_com) January 10, 2025
MAC's analysis focused on the Short-Term Return Profit Ratio (SOPR), a metric that reflects the sentiment of investors holding Bitcoin for less than six months. Currently at 0.987, the metric suggests that those investors are selling Bitcoin at a loss.
Historical patterns show that such behavior often precedes market recovery, making these periods favorable for gathering.
The analysis also identified broader cycle indicators, such as Market Value to Actual Value (MVRV), Unrealized Profit/Loss (NUPL), and the Puell Multiple. These metrics show that the continued correction of the market does not signal the end of Bitcoin's up cycle.
MAC argued that since short-term investors continue to sell at a loss, long-term investors could benefit from acquiring Bitcoin at lower prices. Mac noted:
If there is a further decline from the current price, smart investors are likely to collect the coins that were sold cheaply by short-term investors. Therefore, selling coins at this stage may be a very unwise decision.
Bitcoin market performance and outlook
So far, Bitcoin has not been able to make any major moves to the upside, instead, the asset has continued its gradual descent now marking a 12.9% decrease on go from the top ever.
At the time of writing, BTC is trading at $92,905 bringing its weekly performance into a pullback of about 4%. Despite this, a technical view from Javon Marks, a renowned crypto analyst indicates that Bitcoin may now be. preparing for a big rally to $140,000.
$BTC (Bitcoin) is set up in another Bull Flag pattern and measured breakout moves may call for a MASSIVE MOVE up to prices close to $140,000
!!! pic.twitter.com/AFEosZ2b6k
– JAVON
Mark (@JavonTM1) January 10, 2025
Featured image created by DALL-E, Chart from TradingView
