Bitcoin Price Stumbles But On-Chain Metrics Still Intact!

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The cryptocurrency market has taken a hit as a result of concerns about a new Covid version that was discovered in South Africa. The price of Bitcoin is currently trading at $54,941 and has gained 1.5 percent in the last 24 hours.

Although the short-term price action appears bearish, the underlying fundamental and on-chain trend remains robust, implying that the bull market is likely to continue. Bitcoin has tested a significant uptrend support line near $54K, putting it in a critical technical support zone.

Despite a 22% drop from recent highs of $69K, the trend in on-chain measures is still very favourable. The fact that LTHs and miners aren’t selling aggressively is a tremendously optimistic sign. Long liquidations, younger coins realising losses, and, more lately, the macro risk-off related virus concerns have all contributed to the selling pressure.

The SOPR is a basic on-chain data indicator that can indicate the current benefit of each exit on the blockchain or simply determine the ratio between the prices of a purchase and sell order.

If the SOPR number is more than one, it indicates that a trader made a profit on the market. Most short-term traders have quit at a loss in this situation, which means they’ll be looking at the entry as the price approaches their departure point. According to market statistics, the most selling pressure existed between $56,000 and $55,000.

Short-term traders were the most active sellers on the market during yesterday’s severe sell-off, according to Glassnode data.The Spent Output Profit Ratio of short-term Bitcoin holders has sharply reduced, indicating that most short-term Bitcoin holders “panic sold” when the first cryptocurrency retraced a few percentage points, according to the presented graphic.

The post appeared first on Coinpedia

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Bitcoin (BTC) $ 68,660.40 0.35%
Ethereum (ETH) $ 2,426.19 1.80%
Tether (USDT) $ 0.99928 0.05%
BNB (BNB) $ 558.44 0.22%
Solana (SOL) $ 161.17 0.47%
USDC (USDC) $ 1.00 0.03%
XRP (XRP) $ 0.511381 1.06%
Dogecoin (DOGE) $ 0.167657 10.47%
Lido Staked Ether (STETH) $ 2,425.10 1.79%
TRON (TRX) $ 0.162431 1.52%