Bitcoin Hits “This” Low But What Is The Unrevealed Narrative Around BTC

• Bitcoin’s SOPR hit its lowest point more than two years after the last one
• Short-term estimates for the royal coin showed bearish signs despite several long-term holders remaining in profit

Bitcoin [BTC], for the first time since March 2020, reached its lowest point per Spent Output Profit Ratio (SOPR) on 19 November. According to CryptoQuant analyst Maartunn, it was necessary to touch on this while considering Bitcoin’s chain status.

He further revealed that BTC’s SOPR stood at 0.984 at press time. The metric hits the bottom suggested that most HODLers sold BTC at a loss.

Source: CryptoQuant

Read Bitcoins [BTC] price prediction 2023-2024

Additionally, since the SOPR was less than one, another scenario may be at play. Of course, it was almost inevitable that the daily moved coins would be sold at lower prices than they bought.

However, realized profits were also likely to be held rather than spent. If this were the case, it would be difficult for BTC to exit declining volumes discussed earlier. As of this writing, Bitcoin’s volume had not improved since November 18th. According to CoinMarketCap, the volume fell 14.27% to $23.02 billion in the last 24 hours.

Assets remain, liabilities follow

Despite the downturn, many long-term investors were still in profit. This was ascertained by the UTXO (Unspent Transactions Output) position. According to Glassnode, it is UTXO in surplus at press time was 93,963,834. This suggested that these addresses were buying Bitcoin at a lower price than the current state. Therefore, they have remained in profit without attempting to trade the stock.

On the other side, UXTO in loss lagging behind those with gains. Glassnode showed that these addresses reached 42,516,192. However, it was important to note that these losses increased since BTC’s dumping to $16,000. At the same time, the value of UXTO in profit can be considered low. Thus, its current position could signal that the bottom of the BTC market was near.

Source: Glassnode

Put your short-term BTC desires on hold

Investors might have hoped that the current region was the last base. However, indications from the four-hour chart had opposite opinions. According to the chart, the Bollinger Bands (BB) showed low volatility, indicating that BTC may not explode within the current levels in the near term.

Similarly, the exponential moving average (EMA) supported the indications of BB. At press time, the 50 EMA (yellow) was positioned above the 20 EMA (green). This attitude meant that the possibility of a sharp respite in the short term was close to zero.

However, the longer time frame revealed by the 200 EMA (cyan) seemed to be consistent with a recovery. With the 200 EMA over the shorter period, the king coin holder may need to hold out.

Source: TradingView