On January 7th, after Bitcoin (BTC) 
$94,411 price fell below $100,000, the market experienced significant fluctuations. As investors adopted a cautious approach, CryptoQuant, which tracks market data, indicated signs of a “buying opportunity” during a downturn that investors should pay attention to.
Hope for Bitcoin Prices with SOPR Indicator
CryptoQuant’s analyst, MAC.D, noted that the challenges faced by short-term investors are increasing buying opportunities. He pointed out the rise in negative news on social media following the decline in BTC prices, emphasizing that the current price correction signals a downward trend in the market.
“As short-term investors face more challenges, this usually offers better buying opportunities.” – MAC.D
According to MAC.D, the Spent Output Profit Ratio (SOPR) indicator is currently at 0.987, suggesting that Bitcoin investors who held their coins for less than six months are selling at a loss.
Has Bitcoin Reached Its Cycle Peak?
The analyst expressed that cyclical indicators such as MVRV, NUPL, and Puell Multiple, along with the short-term investor ratio (60%), confirm that Bitcoin has not yet reached its cycle peak. Over the past 24 hours, the Bitcoin price has dropped to $91,220.84, currently trading at $95,726, reflecting a 3.16% increase within that period.
MAC.D concluded that if short-term investors continue to sell BTC, informed investors may take advantage of discounted purchases, indicating that selling now could be a “very irrational decision.”
Expect Increased Volatility Before Trump’s Administration
Bitcoin continues to be a volatile financial asset, responding even to macroeconomic conditions. The market reacted negatively after the U.S. Department of Justice was reported to have permission to liquidate approximately $6 billion worth of BTC seized from the Silk Road marketplace.
Following this news, the market faced a downturn. However, industry leaders like Bitwise CIO Matt Hougan reassured that if the U.S. government sells BTC, the market will absorb it and engage in buybacks. Despite this assurance, the coin has yet to recover.
With expectations of the Trump administration providing support for the crypto industry, increased volatility is anticipated in the coming days. This market activity in Bitcoin is creating strategic buying opportunities for investors, while the overall market outlook continues to capture their attention.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
