Bitcoin (BTC) bears are “exhausted” and are even selling at a loss this week, new data confirms.
In one Tweet on Tuesday, Philip Swift, analyst at the trading platform Decentrader, identified a sustained upward trend in the so-called spent output profit ratio (SOPR).
Bitcoin bear runs out of FUD
The SOPR is a classic indicator to determine whether the Bitcoin market is oversold. Last week the indicator sent a buy signal for the first time since July.
Last time, the BTC / USD pair surged to local highs of $ 53,000 in the weeks that followed. So there are now high hopes that this will happen again.
“We’ve seen more and more chain-loss sales over the past few days,” commented Swift.
“This is a positive thing, especially after the aggressive sell-off in the summer. The bears are exhausted. It is time for the Bitcoin bulls to take the lead again very soon.”
The SOPR is not the only Bitcoin indicator heralding a renewed upward trend. Investors hope to continue and build their positions no matter how big or small they are. And that despite the decline over the past week.
A dramatic decrease in the available liquid BTC supply could put pressure on the spot price, like others to note.
MicroStrategy continues to believe in Bitcoin
Institutions currently do not want to sell, as MicroStrategy’s Bitcoin purchase on Monday shows. The company bought 5,050 new bitcoins
In this context: Institutional traders are buying Solana heavily: Demand for ETH and BTC is ebbing
Analyst Willy Woo has released an updated breakdown of the company’s BTC holdings. From this it is becoming increasingly clear that the company is acting as a Bitcoin custodian for others.
“In case anyone is wondering why MicroStrategy holds so much bitcoin. I think it is easier for companies to buy a MicroStrategy convertible bond to get exposure to BTC than to hold the currency directly. In my opinion, MicroStrategy thinks BTC is many companies, “as he said in a Twitter discussion wrote.
In total, MicroStrategy now has over 114,000 Bitcoin. The average purchase price is just over $ 27,700, 40 percent below the current spot price.