[Analysis] "Bitcoin, short-term investors' signal detected… rebound possible but decline also possible"

Suehyeon Lee

Summary

Bitcoin market: Crypto Dan reported that a 'capitulation' signal from short-term investors was detected.
The on-chain indicator SOPR indicated that the current range could be the bottom, but if the market has already entered a down cycle, the risk of further declines exists.
There is a short-term rebound possibility, but if the $80,000 support level is breached it will be difficult to avoid a larger decline, and the possibility of a drop of more than 70% from the previous peak, as in the past, is low.

An analysis found that short-term investors' 'capitulation' signal was detected in the Bitcoin (BTC) market.

On the 24th (local time), CryptoQuant author Crypto Dan said, 'A capitulation among short-term investors has occurred. Recent sharp declines led short-term holders to cut losses, and in the process market sentiment quickly shifted from positive to negative.'

However, he analyzed that the SOPR (Spent Output Profit Ratio), an on-chain indicator that reflects both long- and short-term volumes, is at a point that can be interpreted in two opposing scenarios. If it is a correction phase, the current level is likely the bottom, but if the market has already entered a down cycle, the risk of further declines still remains.

The author said, 'There is a possibility of a short-term rebound, but if Bitcoin again falls below the $80,000 support level it will be difficult to avoid a larger drop,' adding, 'However, the likelihood of a plunge of more than 70% from the previous cycle high, as occurred in past down cycles, appears low in this cycle.'

BTC