- Since Bitcoin (BTC) decided to drag the market into unexpected pain, traders have been standing on the sidelines. As of writing, BTC is trading at $26,030.
- Hančar stated that he initially expected NUL to push Bitcoin upwards since June.
- The increasing trend of the metric indicates a slowdown in buying power. Conversely, a decreasing SSR indicates a rising purchasing power of stablecoins.
An expert analyst shared tips on accumulation intervals for Bitcoin, predicting a potential opportunity for Bitcoin traders.
An Opportunity Seen for Bitcoin Traders
Expert analyst Tomáš Hančar concluded that there could be an excellent opportunity for Bitcoin investors after monitoring the Spent Output Profit Ratio (SOPR) for six weeks.
For a while now, traders have been standing on the sidelines since Bitcoin (BTC) decided to drag the market into unexpected pain. As of writing, BTC is trading at $26,030, and Hančar believes the opportunity could be to accumulate Bitcoin between $25,000 and $30,000.
aSOPR is calculated by dividing the value of spent outputs by the realized value at the time of spending, and it is calculated by dividing the USD value of spent outputs at creation time (value at creation). Values greater than 1 imply participants sold at a profit, while values less than 1 indicate losses. In terms of the metric, Hančar explained as follows;
“It seems we are closer (picture 1, aSOPR div itself), which indicates the formation of an excellent opportunity for me.”
Generally, Bitcoin’s price movement sets the tone for the entire cryptocurrency market, and the current situation is no exception. Therefore, the chance to accumulate BTC could also mean acquiring many alternative cryptocurrencies.
Another metric pointed out by the analyst was Net Unrealized Loss (NUL). NUL represents the total of UTXOs in a loss, with the price difference between creation and destruction.
Hančar stated that he initially expected NUL to push Bitcoin upwards since June. However, since this did not happen, the downward trend offers an entry point for those in search.
The Market Has Power
Lastly, the analyst compared the Stablecoin Supply Ratio (SSR) with the Relative Strength Index (RSI). SSR is defined as the market value divided by the market value of stable cryptocurrencies.
The increasing trend of the metric indicates a slowdown in buying power. Conversely, a decreasing SSR indicates a rising purchasing power of stablecoins. At the time of writing this article, SSR had decreased, implying the latter.
Hančar stated that this is another confirmation that it is probably closer to the time to load BTC bags. While doing so, he referred to FTX’s collapse and banking crises that occurred earlier this year. He stated:
“This is another confirmation for me that the time to load the famous leverage truck is probably closer than you think.”
In conclusion, the analyst noted that BTC has high upside potential. Therefore, the reversal of the current trend may be possible as long as the market does not become liquid.
