The recent movement in Bitcoin price following the halving event has left many investors disappointed. Despite failing to settle above $65,000 last week, Bitcoin is currently trading at $62,105, showing a decrease of 2.96% and 6.14% in the past 24 hours and seven days, respectively.
According to a CryptoQuant analyst, Bitcoin’s Adjusted Spent Output Profit Ratio (aSOPR) is indicating bullish signs, hinting at a possible reversal of the crypto’s price momentum. However, there is also a risk of Bitcoin recording a new monthly low with potential downside below $62,000.
Indecisiveness in Short-Term Trajectory
A recent analysis by Phi Deltalytics at CryptoQuant highlighted the indecisiveness in Bitcoin’s price trajectory in the short term. This analysis was based on the SOPR ratio, which measures the profit ratio of spent outputs, indicating a lack of clear direction in the market sentiment. While the short-term SOPR shows indecisiveness, the adjusted SOPR continues to move upward, signaling bullish momentum.
Further analysis suggests that long-term holders are reaping more profits compared to short-term holders, as indicated by the long-term SOPR to short-term SOPR ratio. This persistence of bullish momentum with the adjusted SOPR reflects that the price of Bitcoin has not been favorable for short-term holders.
Possible Downward Shift
Phi Deltalytics warns that if the adjusted SOPR shifts to a bearish signal, it could lead to a rapid downward movement in the price of Bitcoin. The current range-bound price action between $60,000 to $70,000 has raised concerns among analysts about Bitcoin potentially reaching its peak in the current market cycle.
Future Price Trajectory
The delay in breaking above $74,000 has sparked speculations about Bitcoin’s future price trajectory. While some believe that Bitcoin may have reached its peak, others anticipate a potential price surge within the next nine months, considering historical halving events and market cycles.
The current state of Bitcoin’s price analysis reflects a mix of bullish and bearish signals, indicating a certain level of uncertainty in the market. Investors are advised to exercise caution and conduct thorough research before making any investment decisions, considering the risks associated with cryptocurrency investments. Only time will reveal the true trajectory of Bitcoin’s price in the coming months.
