Bitcoin at $25,000: Market optimism triggers return of ‘buy the dip?’
Amid tightening regulatory oversight, and negative investors’ sentiment, Bitcoin’s [BTC] price momentarily traded above the $25,000 price mark last week.
While this represented a new price action for the king coin for the first time since mid-June 2022, Glassnode, in a new report , found that BTC’s on-chain investor activity seemed to be on the cusp of a new cycle, indicating a possible turning point.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
As BTC trades below $25,000, on-chain activity revealed that investors expect the leading coin to reclaim the price position and have begun to “buy the dip” in anticipation of the same.
Glassnode assessed BTC’s Short-term Holder Dormancy metric on a 30-day moving average and found that in the current market, short-term holders “are spending coins with a more extended holding period.” According to the report:
“This is typically seen in bullish impulses, as expectations of gains encourage investors to hold on a little longer and ride the market swing.”
Source: Glassnode
With the year so far marked by a significant jump in BTC’s value, many investors have taken to profit-taking. As most of them anticipate a reclaim of the $25,000 price mark, profit-taking has slowed. Likewise, selling pressure has reduced, Glassnode discovered. This was done by an assessment of BTC’s Adjusted Spent Output Profit Ratio (aSOPR).
According to Glassnode Academy, the SOPR metric provides insight into macro market sentiment, profitability, and losses taken over a particular time frame. The aSOPR excludes all transaction volume for coins with a lifespan younger than 1hr.
According to the report:
“Overall, this signals a reduction in sell-side pressure and a potential return of the ‘buy-the-dip’
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