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January 24, 2025

Bitcoin Remains Below $95k: Analyst Says It’s a Golden Time to Accumulate—Here’s Why Samuel Edyme | usagoldmines.com

Despite the anticipation of a new year’s recovery, Bitcoin (BTC) has experienced a relatively unstable upside performance since the start of the year, leaving many investors questioning its next move.

Regardless of the lack of significant momentum, recent insights from analysts have brought attention to key 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 Accumulation Potential

A contributor to CryptoQuant’s QuickTake platform, MAC.D, highlighted an ongoing trend in a post titled “Short-term SOPR Below 1: A Good Time for Accumulation.”

The analysis emphasized that current market conditions, though challenging for short-term investors, may represent an opportune moment for long-term accumulation.

MAC’s analysis focused on the Short-Term Spent Output Profit Ratio (SOPR), a metric that reflects the sentiment of investors holding Bitcoin for less than six months. Currently at 0.987, the metric suggests that these investors are selling Bitcoin at a loss.

Bitcoin Short-Term Spent Output Profit Ratio (SOPR).

Historical patterns show that such behavior often precedes market recoveries, making these periods favorable for accumulation.

The analysis also pointed to broader cycle indicators, such as Market Value to Realized Value (MVRV), Net Unrealized Profit/Loss (NUPL), and the Puell Multiple. These metrics indicate that the ongoing market correction does not signal the end of Bitcoin’s upward cycle.

MAC argued that as short-term investors continue to sell at a loss, long-term investors could benefit by acquiring Bitcoin at reduced prices. Mac noted:

If there is further decline from the current price, smart investors will likely accumulate the coins sold cheaply by short-term investors. Therefore, selling coins at this juncture might prove to be a very unwise decision.

Bitcoin Market Performance And Outlook

So far, Bitcoin has been unable to make any major movements to the upside, instead, the asset has continued to gradually descend now marking a 12.9% decrease away from its all-time high.

Bitcoin (BTC) price chart on TradingView

At the time of writing, BTC trades at $92,905 bringing its weekly performance into a drawdown of roughly 4%. Regardless of this, a technical perspective from Javon Marks, a renowned crypto analyst reveals that Bitcoin might now be gearing up for a massive rally to $140,000.

Featured image created with DALL-E, Chart from TradingView

 

This articles is written by : Nermeen Nabil Khear Abdelmalak

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