Bitcoin

Bitcoin Price Stumbles But On-Chain Metrics Still Intact!

Written by: Delma Wilson

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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Nov 28, 2021

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The cryptocurrency market has taken a hit as a result of concerns about a new Covid version that was discovered in South Africa. The price of Bitcoin is currently trading at $54,941 and has gained 1.5 percent in the last 24 hours.

Although the short-term price action appears bearish, the underlying fundamental and on-chain trend remains robust, implying that the bull market is likely to continue. Bitcoin has tested a significant uptrend support line near $54K, putting it in a critical technical support zone.

Despite a 22% drop from recent highs of $69K, the trend in on-chain measures is still very favourable. The fact that LTHs and miners aren’t selling aggressively is a tremendously optimistic sign. Long liquidations, younger coins realising losses, and, more lately, the macro risk-off related virus concerns have all contributed to the selling pressure.

The SOPR is a basic on-chain data indicator that can indicate the current benefit of each exit on the blockchain or simply determine the ratio between the prices of a purchase and sell order.

If the SOPR number is more than one, it indicates that a trader made a profit on the market. Most short-term traders have quit at a loss in this situation, which means they’ll be looking at the entry as the price approaches their departure point. According to market statistics, the most selling pressure existed between $56,000 and $55,000.

Short-term traders were the most active sellers on the market during yesterday’s severe sell-off, according to Glassnode data.The Spent Output Profit Ratio of short-term Bitcoin holders has sharply reduced, indicating that most short-term Bitcoin holders “panic sold” when the first cryptocurrency retraced a few percentage points, according to the presented graphic.

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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