While the leading cryptocurrency Bitcoin has corrected almost 10% in the last two days, investors are focusing on whether this correction is over.
At this point, the CryptoQuant analyst examined the sentiment of short-term investors who held their Bitcoins for less than 155 days while analyzing whether the correction was over.
Pointing out that short-term investors have a significant impact on the market, the analyst said that these investors are quickly affected by sudden changes in the market and take action immediately.
Stating that he will use some measurements to analyze whether the correction in BTC is over or not, the analyst said that these are “Short-Term Holder SOPR (Values below 1 indicate that BTC moves at a loss, values above 1 indicate taking profit.); He said that the Bitcoin he sent was Net Profit Loss (Bitcoin sent to stock exchanges by short-term investors).
Stating that these indicators signal that the correction is over in the current situation, but this situation is not certain, the analyst said that unpredictable events such as the black swan event, the US government or Mt. He stated that negative news such as Gox selling Bitcoin could trigger a decline in BTC at any time.
“First of all, STH SOPR shows that short-term investors have sold their Bitcoins at a loss in the last 2 days. The value, which has been below 1 in recent days, has now started to turn above 1. This signals that the selling pressure on Bitcoin has weakened.
Secondly, the Net Profit Loss on BTC Sent by Short-Term Owners to the Exchanges similarly shows that short-term investors have stopped making losses on BTC transfers to the exchanges.
So what do these measurements mean: This means the selling pressure is weakening. Weak hands have been sold and the market is waiting to see what happens next.
Does this mean the fix is over? Unforeseen events such as a black swan event or the U.S. government or Mt. Negative news, such as Gox selling Bitcoin, can instantly trigger a BTC price decline.
However, we have no control over such events. If such negative events do not occur, I think the end of the correction is near. “This is not investment advice and Bitcoin's past performance is not indicative of future results.”
*This is not investment advice.
