Bitcoin speculators have sold at a loss and this week offers a great buying opportunity, analysts say.

The data shows that Bitcoin’s output-to-spend ratio (SOPR) turned negative for the first time in six weeks on Wednesday.

SOPR flashes “buy dip”

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

The last time the SOPR was negative was July 20, just before Bitcoin got $ 50,000 back. Philip Swift, analyst at Decentrader, sums it up:

“SOPR went negative (green) yesterday as speculators in the chain sold at a loss. A similar picture paints the financing rates of the last few months, where many forced sales took place in the summer, which made it a buying opportunity for the break-in. “

The source: Decentralized / Twitter

“Good news” for Bitcoin bulls

As reported by Bitcoin Magazine, a whale map study highlighted that Tuesday’s BTC price drop was caused by over-leveraged traders unable to withstand the pressure of young whales to sell.

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

Meanwhile, the SOPR data for Whalemap also suggests the ability to track higher prices.

“SOPR at 1 in an emerging market is good news. A small sideways movement is typical for the market before the bulls. “

The source: Walkarte / Twitter

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Annie

According to Cointelegraph

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