[Analysis] "Bitcoin Downtrend, a Buying Opportunity in the Long Term"

An analysis has emerged suggesting that the current downtrend in Bitcoin (BTC) is a buying opportunity from a long-term perspective.

On the 21st, 'Avocado Onchain', a contributor to the on-chain data analysis platform CryptoQuant, stated, "For new investors who entered during the recent Bitcoin uptrend, this is a painful time. However, it is unlikely that the price will fall to the realized price ($71,000) of investors who entered 1-3 months earlier," he said.

He predicted that "even during the bull market of 2021, Bitcoin repeatedly underwent price corrections. However, Bitcoin ultimately showed an upward movement," suggesting a similar pattern this time.

He added, "Analyzing the SOPR of short-term investors with a 30-day moving average shows that the movements of short-term investors seen at the peak of the last cycle are absent, indicating that this correction is temporary. I think now is a good opportunity to buy Bitcoin cheaply. I recommend dollar-cost averaging during short-term declines."

Meanwhile, the short-term investor SOPR indicator shows whether current investors are in profit or loss for coins held for more than 1 hour and less than 155 days. If this indicator is above 1, it means a higher proportion of investors have made a profit from short-term investments, and if below 1, a higher proportion have incurred losses.