BTC approaches $95,000 as data shows mature buying period

Economic data and general profit-taking may have weighed on Bitcoin’s (BTC) early rally, but data tracking investor behavior suggests that buying at current price levels may benefit those looking to enter Bitcoin markets.

Onchain data shows that Bitcoin’s Spending Profit Percentage (SOPR) has crept to 0.987 as of Friday, suggesting that investors who have held Bitcoin for less than six months are selling at a loss. Historically, this scenario is often preceded by a price rebound, indicating a potential buying opportunity.

Other well-followed cycle indicators, such as market value to realized value and Puell multiple, short-term investors 60% report that the market has not peaked, and this week’s correction does not appear to signal the end of the bull cycle, according to CryptoQuant contributing analyst Mac_D.

“Since short-term investors experience more pain, this often presents better opportunities for accumulation,” MAC_D he said in a post Thursday. “If there is a further decline from the current price, savvy investors will likely accumulate coins that short-term investors are selling at a cheap price. Therefore, selling coins at this point may be a very unwise decision.”

SOPR measures the profit or loss of Bitcoin output spent by comparing the value of coins when they were last transferred to their value when they were spent again. Short-term SOPR focuses on currencies that have moved over a relatively short time frame (less than 155 days), and can indicate market sentiment, as a value less than 1 may indicate capitulation or a market bottom, which may indicate a good time to buy.

MVRV compares Bitcoin’s total market value (market cap) to its “realized value,” which values ​​each Bitcoin at the price it last moved. It is used to measure whether Bitcoin is overbought or oversold, which helps predict potential market tops or bottoms.

Bitcoin approached $95,000 in European morning hours on Friday after a decline in US hours took it to nearly $90,000 late Thursday, down 10% from a weekly high above $120,000. .

New economic data sent US Treasury yields higher on Thursday, sending stocks lower and a simultaneous decline in risk assets like Bitcoin. The Institute for Supply Management’s (ISM) latest report on US providers was stronger than expected, with a measure of prices paid reaching its highest point since early 2023.

Traders are awaiting the release of the US Non-Farm Payrolls (NFP) report later on Friday before selecting additional positions, as… As reported by CoinDesk. Strong non-farm payrolls numbers point to a strong economy, which indicates a potential rise in interest rates, which tends to be bad for risk assets like Bitcoin.