During the last 7 days, Bitcoin price have been dropping from USD 23.200. Different news moved financial markets in general, and more particularly, Bitcoin.
Meanwhile, Bitcoin technology continues developing. Among other things, the number of Ordinal NFTs keeps growing and those transactions create congestion in the network, as well increase the weight of the blocks.
Despite we are facing an unexpected sum of worldwide events, a technical analysis estimates that BTC could be close to a bullish trend, higher than the increment had done in this 2023. This indicator we are mentioning is called SOPR (spent output profit ratio). It measures the variation between selling and buying that are happening in the chain and usually estimates possible future movements.
Conversely, when SOPR is above 1 sharp, it means that the average of people is selling BTC with gains; whilst when SOPR is below 1, shows that investors (average) are selling in loss, and this is what happened last year in a bearish market, but now, the tendency says the opposite.
Ultimately, SOPR is above 1 and in its highest level since November 2021, according to Whalemap on-chain data. The same analysis firm estimated that if the tendency continues as it is, it may have a bullish trend for Bitcoin, but the tendency behaviour must be followed to see where it is going.
As per Crypto Quant and considering a different metric which is called “SOPR ratio” the tendency seems to be bullish too. This indicator calculates the value of long-term investors over short-term ones.
The bullish expectation market clashes with the president of The Federal Reserve of United States which is insistent to keep and increase interest rates to fight inflation.
However, not everyone agrees on a bullish market. Economists as Aarón Olmos maintain that it is crucial for the markets to recover in general in order to predict the rise of Bitcoin.
