Bitcoin (BTC) Might Be Poised for a Notable Price Correction, Analyst Claims

This possibility of a price correction is based on major Bitcoin metrics such as the Adjusted Spent Output Profit Ratio (ASOPR), signaling a notable

A recent analysis by a CryptoQuant analyst suggests that Bitcoin (BTC) might be due for a price correction. This possibility is being signaled by key Bitcoin metrics, including the Adjusted Spent Output Profit Ratio (ASOPR).

Understanding ASOPR's Role In Predicting BTC Corrections

ASOPR, a crucial indicator in the crypto market, measures the profit ratio of spent outputs. It does this by comparing the value at which coins were bought to the value at which they were sold.

According to the CryptoQuant analyst, when this ratio is above 1, it suggests that coins are being sold at a profit, which usually correlates with bullish market conditions.

However, a critical threshold observed in historical data is when ASOPR approaches 1.08. At this point, the market tends to shift, signaling a potential onset of a correction phase.

This pattern has been consistent over several market cycles, providing a valuable tool for investors to assess the market's health. For instance, when ASOPR climbs steadily above 1 but nears the 1.08 mark, investors might consider this an opportune moment to evaluate their positions before potential downturns.

The CryptoQuant analyst particularly noted:

“Considering past instances where similar patterns were observed, there is a possibility that the current situation might follow the same (down) trend.”

Another critical component the analyst mentioned in his BTC market analysis is the 200-day moving average (MA), which is largely regarded as an indicator of the long-term market trend.

This indicator helps smooth out price data by creating a constantly updated average price, which can be pivotal in confirming the overall market direction. A rising 200-day MA suggests a long-term uptrend, while a decline might indicate a bearish market.

According to the chart shared by the analyst, Bitcoin's performance below this key moving average currently confirms the cautious stance suggested by the ASOPR.

With the price hovering around $64,000, a 14% drop from its recent peak, the convergence of these indicators suggests that the market might still be in a phase of reassessment and potential adjustment.

Bitcoin's Continued Stagnancy

The prediction from the metric above is quite evident, as Bitcoin's value continues to fall despite significant positive developments within the industry.

Earlier today, Standard Chartered Plc announced the launch of a new trading desk for Bitcoin and Ethereum, marking a significant move into spot cryptocurrency trading by one of the world's major banks.

Moreover, the Winklevoss twins, founders of the crypto company Gemini, have publicly supported Donald Trump's presidential campaign, each donating $1 million each in BTC for being a “pro-Bitcoin” candidate.

Related Reading: Bitcoin Analyst Claims BTC Consolidation Will Continue, Hedge Funds Throw In The Towel

However, these developments have not spurred any significant upward movement in Bitcoin's price, which has seen a 1.1% decline in the past 24 hours to $63,935.

Analyst Ansem predicts that Bitcoin may not see a significant price increase until later this year, anticipating it will remain between $58,000 and $60,000 for some time.

Featured image created with DALL-E, Chart from TradingView

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-btc-poised-notable-price-correction-analyst-claims.html

The above is the detailed content of Bitcoin (BTC) Might Be Poised for a Notable Price Correction, Analyst Claims. For more information, please follow other related articles on the PHP Chinese website!