Bitcoin Dips Should Be Bought Moving Forward
According to the CTO of Bitcoin analytics company Glassnode, Rafael Schultze-Kraft, the ongoing correction is likely a dip to buy. He shared the chart below, which shows the spent output profit ratio (SOPR) flirting with the pivotal level of one.
In bull markets, whenever the metric falls below one, it is often seen by investors as a medium-term buying opportunity.
Chart of BTC's price action over the past few weeks with an on-chain analysis of the Adjusted SOPR indicator from Glassnode's Rafael Schultze-Kraft.
Not a Standard Correction
Corroborating the expectations of a return to the upside, Willy Woo noted that the recent drop was not a standard correction by on-chain standards. That’s to say, there were irregularities in the move lower that may soon be ironed out by Bitcoin returning higher.
Woo noted last week that Bitcoin is poised to enter an uptrend because there was recently a spike in BTC changed hands.
The spike was seemingly MicroStrategy’s latest purchasing of Bitcoin. Spikes in BTC changing hands on chain, Woo noted, often precedes a reversal in price action.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com On-Chain Data Shows This Is a Bitcoin Price Dip to Buy: Exec
Originally from Bitcoinist.com https://ift.tt/32Uhq95
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