Crypto analysts at username Pelinaypa have a potentially strong bullish meaning in recent changes in Bitcoin Traders’ profitability. In particular, the best cryptocurrencies continue to trade within the $115,000 price region, after the equal measurements were revised after previous price profits on Thursday.
SOPR Ratio Trend: Market Signals Point to the New Bitcoin Rally
In a Quicktake post on September 19th, Pelinaypa shares potential insights into Bitcoin’s future trajectory, based on the latest developments in the used output profit margin (SOPR). In the context, SOPR is an on-chain metric that reflects whether Bitcoin investors are selling coins with profit or loss.
However, this metric can also be used to measure the balance of profitability between long-term and short-term holders when comparing the SOPR ratios of both parties, i.e. LTH/STH SOPR ratios. Higher ratios (lth>sth) indicate that veteran investors are more profitable and often indicate the launch or continuation of a sustainable bull market.
Conversely, if the ratio is low (LTH) For example, in the 2020-2021 Bull Run, the ratio remained moderate as short-term traders recorded significant profits along with long-term holders, establishing unsustainable rally and weak market tops, ultimately causing significant price adjustments.
Pelinaypa also curtailed the depth of the 2022-2024 bear market during the SOPR ratio, reflecting the low profitability of long-term holders, but as Bitcoin began recovering through 2023 and 2024, the metric began to climb again, causing potential structural changes to the new bull phase.
In the current market, the LTH/STH SOPR ratio is balanced, but it moves upwards. This is a sign that long-term holders are regaining their benefits. Pelinaypa suggests that this could mark the early stages of the new bull cycle, with the indicator pointing to $120,000 as the next major upward technology target.
Bitcoin jelly accumulation remains high
Other news shows that US-based agencies and whales continue to accumulate a significant level of Bitcoin, regardless of price movements. Market analyst DarkFost reports that Coinbase Premium has been consistently positive since April, reflecting stronger institutional demand from US traders compared to entities on other trading platforms such as Binance. At the time of writing, Bitcoin will trade at $115,668 after a net loss of 0.35% over the past seven days.
Flickr featured images, TradingView charts
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