Despite expectations for a Novel Year’s recovery, Bitcoin (BTC) has seen relatively volatile gains since the beginning of the year, leaving many investors questioning its next move.
Regardless of the lack of significant momentum, recently observations from analysts drew attention to key trends and opportunities for BTC accumulation. These perspectives provide a deeper understanding of Bitcoin’s market structure and offer strategies for navigating its current environment.
Brief-term losses indicate accumulation potential
CryptoQuant’s QuickTake platform contributor MAC.D highlighted the continuing trend in a post titled “Short-Term SOPR Below 1: A Good Time to Accumulate.”
The analysis highlights that current market conditions, although tough for short-term investors, may represent an opportune moment for long-term accumulation.
Brief-term SOPR below 1, good time to accumulate
“As short-term investors feel more pain, this often creates better opportunities for accumulation.” – By @MAC_D46035
Further details https://t.co/gNGhFcp7DB pic.twitter.com/BOUJjBFzGp
— CryptoQuant.com (@cryptoquant_com) January 10, 2025
MAC’s analysis focused on the Brief-Term Spent Output Profit Ratio (SOPR), an indicator that reflects the sentiment of investors who have held Bitcoin for less than six months. This ratio is currently 0.987 and suggests that these investors are selling Bitcoin at a loss.
Historical patterns show that this behavior often precedes a market recovery, making these periods favorable for accumulation.
The analysis also pointed to broader cycle metrics such as market value to realized value (MVRV), net unrealized profit/loss (NUPL) and Puell’s multiple. These indicators indicate that the ongoing market correction does not signal the end of Bitcoin’s bullish cycle.
MAC argued that as short-term investors continue to sell at a loss, long-term investors could benefit from purchasing Bitcoin at depressed prices. Mac remarked:
If there is a further decline in the current price, shrewd investors will likely accumulate coins sold cheaply by short-term investors. Therefore, selling your coins at this time may turn out to be a very unwise decision.
Bitcoin market performance and prospects
Bitcoin hasn’t been able to make any major upward moves so far, instead its value has gradually declined, down 12.9% from its all-time high.
At the time of writing, BTC is trading at $92,905, causing its weekly performance to decline by approximately 4%. Regardless, a technical perspective from Javon Marks, a renowned cryptocurrency analyst, suggests that Bitcoin may now be gearing up for a massive surge to $140,000.
$BTC (Bitcoin) has formed another Bull Flag pattern and measured breakout moves could require a HUGE MOVE all the way to prices near $140,000
!!! pic.twitter.com/AFEosZ2b6k
— JAVON
SIGNS (@JavonTM1) January 10, 2025
Featured image created with DALL-E, chart from TradingView