Bitcoin index turns green just before 50,000 BTC bullish returns are made

Bitcoin (BTC) speculators have sold at a loss and this week offers a buying opportunity, according to analysts.

The data shows that Bitcoin’s spend-out-of-return ratio (SOPR) fell negative for the first time in six weeks on Wednesday.

SOPR says “buy software”

A classic buy signal, negative SOPR, implies that sellers have dumped BTC and thus the oversold market is ripe for long-term buyers to profit from cheap coins.

The last time SOPR went negative was July 20, just before Bitcoin took off to reclaim $ 50,000.

“Yesterday’s output on output was negative (in green) as speculators in the chain sold at a loss,” said Philip Swift, an analyst at Decentrader. summary for Twitter followers on Thursday.

“Shows a similar picture with funding rates over the past few months, where there have been many foreclosures over the summer, making this a buy-sell-price opportunity now.”

“Good news” for Bitcoin speculators

As Cointelegraph reported, the study highlighted Tuesday’s drop in BTC price that came from above-average traders unable to withstand the pressure to sell young whales.

Related: Bitcoin price equals ‘impulsive gains’ as Solana (SOL) leads altcoin rise

After the market eliminated these players, optimism returned with more sustained gains.

For the on-chain monitoring resource whale map, the SOPR data also suggests the possibility of higher levels coming back.

“SOPR at 1 in an emerging market is good news,” coworker commented to the current numbers of the index.

In separate comments to Cointelegraph, the Whalemap team added that a “slight sideways movement” should characterize the market before a rally sets in.