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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Oct 24, 2024 05:31 UTC
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Good Time to Buy Bitcoin? aSOPR Metric Hints at Bullish Move Ahead
Bitcoin’s low aSOPR suggests it’s an ideal time for long-term accumulation.
Smart investors accumulate Bitcoin when aSOPR stays below 1.04 for long-term gains.
Large investors have added 173,000 Bitcoin this year, signaling strong market moves.
Bitcoin’s rollercoaster ride continues. The king crypto is currently trading around $67,500 after a sharp drop from its recent high of $69,000. Traders are watching closely and all are at the edge of their seats, trying to predict the next big move. According to CryptoQuant analyst Woominkyu, this could be an ideal time for accumulation. The Adjusted Spent Output Profit Ratio (aSOPR) suggests Bitcoin is entering a key accumulation phase, hinting at a possible price surge soon.
Could this be the moment to buy before the next rally?
What is aSOPR and Why Does it Matter?
Bitcoin has a history of moving in predictable cycles, and one important tool for tracking this is the aSOPR. This metric measures whether Bitcoin holders are selling their coins at a profit or a loss.
When the aSOPR goes above 1.08, it usually means large investors, or “whales,” are cashing out their profits, which often signals a market top. This is a warning sign that the price might peak, and a correction could be on the way.
Right now, the aSOPR is at 1.01, much lower than the level that typically signals a market peak. This suggests the market is in an accumulation phase, where long-term investors are buying Bitcoin at lower prices, potentially ahead of a price increase.
Whales vs Retail Investors: What’s the Strategy?
In past market cycles, whales tend to accumulate Bitcoin when the aSOPR is low, between 1.01 and 1.04. Once it rises above 1.08, whales usually start selling, pushing the price higher. For smart investors, buying before the aSOPR hits 1.04 could offer solid long-term growth opportunities.
Currently, whales are aggressively accumulating Bitcoin, while retail investors are slowing down. Large holders with 1,000 to 10,000 BTC have added 173,000 Bitcoin to their wallets this year, far more than the 30,000 BTC added by retail investors.
Another positive sign is that open interest in Bitcoin futures has hit a record $40.5 billion. This spike in futures activity could indicate that another major price rally is on the horizon.
As the market shifts, one question remains: Are you prepared to seize the opportunity? Tell us.
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