Bitcoin’s price movement has been impressive, but it has failed to surpass the $64,000 mark in recent days, leaving investors wondering if they will have to wait longer for another rise. According to CoinMarketCap, Bitcoin has experienced a decline of over 2% in the last week, causing its price to drop below $64,000. Currently, it is trading at $63,843.66 with a market value of over $1.26 trillion.
This negative price movement has led to a downtrend in sentiment surrounding the leading cryptocurrency since April 27. Social volume has also slightly decreased, indicating a decline in Bitcoin’s popularity in the crypto space. To shed light on this situation, Phi Deltalytics, a writer and analyst at CryptoQuant, conducted an analysis using a significant Bitcoin metric.
According to the analysis, Bitcoin’s adjusted output profit ratio (SOPR) continues to rise, but the short-term SOPR has entered a zone of uncertainty. This inconsistency has created a complex environment where short-term investors may face losses. Glassnode data analysis also revealed an interesting development related to short-term holders. Bitcoin’s short-term holder market value to realized value (STH MVRV) has dropped in recent weeks. A low MVRV suggests that Bitcoin’s current price is relatively lower compared to previous transaction prices, indicating high confidence in Bitcoin. However, the price was still low at the time of writing, which could be seen as a bullish signal.
It is important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.