Summary
- In the Bitcoin (BTC) market, profit-taking supply is emerging, but buying demand remains strong enough to keep prices from falling immediately.
- Glassnode said a sustained move above 1 in Entity-Adjusted SOPR is a hallmark of a bull market.
- Glassnode added that if SOPR falls back below 1, it could be read as a sign that current buying demand is weakening.
Forecast Trend Report by Period
Bitcoin is holding up despite profit-taking in the BTC market, suggesting buying demand remains strong enough to prevent an immediate pullback.
Glassnode, an on-chain analytics firm, wrote on X on September 19 that buying demand is currently strong enough that Bitcoin does not fall immediately even when it is sold at a profit.
The firm said a sustained Entity-Adjusted SOPR reading above 1, an indicator of market participants' realized profit and loss, is a hallmark of a bull market. When SOPR is above 1, it means Bitcoin changing hands in the market is, on average, being transacted at a profit.
Glassnode added that if SOPR falls back below 1, it could be viewed as a sign that current buying demand is weakening.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.