Despite the expectation of a recovery in the new year, Bitcoin (BTC) has seen a relatively unstable upward performance since the beginning of the year, leaving many investors wondering what its next move will be.
Aside from the lack of much momentum lately Visions Analysts drew attention to the main trends and accumulation opportunities for BTC. These perspectives provide a deeper understanding of Bitcoin’s market structure and offer strategies for navigating its current environment.
Short-term losses indicate the possibility of accumulation
A contributor to CryptoQuant’s QuickTake platform, MAC.D, highlighted the ongoing trend in a post titled “Short-Term SOPR Below 1: The Right Time to Accumulate.”
The analysis stressed that current market conditions, although challenging for short-term investors, may represent an opportune moment for long-term accumulation.
Short-term SOPR less than 1, is a good time to accumulate
“Since short-term investors experience more pain, that often presents better opportunities for accumulation.” – By @MAC_D46035
More details https://t.co/gNGhFcp7DB pic.twitter.com/BOUJjBFzGp
— CryptoQuant.com (@cryptoquant_com) January 10, 2025
MAC’s analysis focused on the short-term output profit ratio (SOPR), a measure that reflects the sentiment of investors who hold Bitcoin for less than six months. Currently at 0.987, the gauge indicates that these investors are selling Bitcoin at a loss.
Historical patterns show that such behavior often precedes a market recovery, making these periods favorable for accumulation.
The analysis also pointed to broader cycle indicators, such as market value to realized value (MVRV), net unrealized gain/loss (NUPL), and the Puell multiplier. These metrics suggest that the ongoing market correction does not signal the end of Bitcoin’s bull cycle.
MAC claimed that as short-term investors continue to sell at a loss, long-term investors can benefit from acquiring Bitcoin at discounted prices. Mac noted:
If there is a further decline from the current price, savvy investors will likely accumulate coins that short-term investors are selling cheaply. Therefore, selling coins at this point may be a very unwise decision.
Bitcoin market performance and forecast
So far, Bitcoin has not been able to make any significant moves to the upside, instead, the asset has continued to gradually decline now recording a 12.9% decline away from its all-time high.
At the time of writing, Bitcoin is trading at $92,905, dragging down its weekly performance by approximately 4%. Regardless, a technical perspective from Javon Marks, a popular cryptocurrency analyst, reveals that Bitcoin may now be poised for a massive rally to $140,000.
$ Bitcoin Bitcoin has been established in another Bull Flag pattern and measured breakouts could require a massive move to prices approaching $140,000.
!!! pic.twitter.com/AFEosZ2b6k – Javon
Marx (@JavonTM1) January 10, 2025
Featured image created with DALL-E, chart from TradingView