The tentative agreement in the US debt limit talks has been reflected in Bitcoin and altcoins as a rise.
This reflection allowed BTC to go up to $ 28,400, and the largest altcoin Ethereum (ETH) to $ 1,920.
Stating that this rise in Bitcoin seems permanent, Glassnode said that the SOPR seven-day moving average has recently risen above 1.
Commenting on the SOPR ratio exceeding 1, Blockware Solutions analysts said in the report they prepared for their customers:
“After a short period of time when bitcoins were at a loss, the SOPR rate has risen above 1 again.
This indicates a bullish trend in the short term as it shows that short-term investors are making a profit.”
A SOPR ratio below 1 is seen as a sign of capitulation, while a ratio of 1 indicates that short-term investors are neither in loss nor profit.
A SOPR ratio above 1 is also interpreted as meaning that short-term investors are selling their BTC at a profit.
Comparing the historical SOPR rate and bulls, Blockware Solutions analysts noted that the SOPR rate has historically remained above 1 during bull markets.
Finally, analysts added that the SOPR ratio rose above 1 in January, giving the first signal that the downtrend has reversed and the trend has changed to bullish.
Bitcoin, which has increased by 2.70% in the last 24 hours, is trading at $ 27,886 at the time of writing.
*Not investment advice
