CryptoQuant analyst points to Bitcoin's plunge as a major rallying opportunity

Key Takeaways

Bitcoin short-term investors are selling at a loss, creating potential accumulation opportunities.
Indicators like MVRV and NUPL suggest that the Bitcoin market is still in an upward trend.

Bitcoin's decline has created a major opportunity to rally, according to Mac_D's CryptoQuant analysis.

The indicator has not shown any signs of strength after being sold from weekly highs of $103,000 on Monday, but long-term metrics indicate that the market's uptrend remains intact.

MAC_D Analyzer reported on Thursday that the current bearish sentiment coincides with a drop in Bitcoin's short-term SOPR (Profit Yield Spent Ratio), which has fallen to 0.987.

This metric shows that investors holding Bitcoin for less than six months are now selling at a loss.

MAC_D noted that such periods of short-term investor losses have historically presented favorable rallying opportunities.

“When short-term investors lose, long-term cycle indicators such as MVRV, NUPL, and the Puell Multiple often indicate that the market is still in an upward trend,” he said.

He said that the current correction does not suggest the peak of a cycle, and that savvy investors could take the opportunity to collect Bitcoin at discounted prices.

Historical data shows that long-term investors often step in to collect Bitcoin during market corrections because short-term holders sell at a loss.

This behavior, often seen during market corrections, can set the stage for a price rebound as selling pressure subsides. At press time, Bitcoin is trading at $93,500.