- TThe $25,000 to $30,000 range still serves as an opportunity zone to buy BTC.
- Market participants have the buying potential, provided the ecosystem remains liquid.
After tracking the adjusted Spent Output Profit Ratio (SOPR) for six weeks, analyst Tomáš Hančar concluded that this could be a perfect opportunity present yourself for Bitcoin [BTC] merchants.
Read Bitcoins [BTC] Price prediction 2023-2024
Traders have been on the brink for some time since BTC decided to throw the market into unexpected trouble. At the time of writing, the price of BTC was at $25,964, and Hančar opined that the possibility of accumulating Bitcoin could be between $25,000 and $30,000.
Here to provide opportunities
For context, the aSOPR is calculated as the value of outputs spent at time spent (value realized) divided by the USD value of outputs spent at time created (value at creation).
Values greater than 1 imply participants are selling at a profit. Conversely, values less than 1 suggest letting go with a loss. Regarding the metric, Hančar explained:
“Apparently we’re almost done (photo 1, the aSOPR div itself), which I see as the perfect opportunity to form.”
Often, Bitcoin’s price movement sets the tone for the entire cryptocurrency market, and the current situation is no exception. So an opportunity to collect BTC can also mean an opportunity to boast some altcoins.
Another metric the analyst pointed out is net unrealized loss (ZERO). The ZERO is the sum of UTXOs that lose by the price difference between created and destroyed.
Hančar said he initially expected ZERO Bitcoin to float upwards since June. But since that didn’t happen, the downward trend provides an entry point for those looking for it.
Source: CryptoQuant
The market has the power
Finally, the analyst considered the Stablecoin Supply Ratio (SSR) compared to the Relative Strength Index (RSI). The SSR is defined as a ratio of the market capitalization divided by the market capitalization of all stablecoins.
The rising trend of the metric implies that purchasing power is slowing down. Conversely, a decreasing SSR suggests a rising status of the stablecoin’s purchasing power. At the time of writing, the SSR was dropping, implying the latter.
Source: CryptoQuant
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Hančar opined that this was yet another confirmation that it was time to load BTC bags. In doing so, he referred to the collapse of the FTX and the banking crises that occurred earlier this year. He noted that,
“For me, this is yet another confirmation that the time to load the proverbial forklift is probably closer than you might think.”
Finally, the analyst mentioned that BTC’s potential to turn bullish was high. So there could be a reversal of the current trend unless the market becomes illiquid.