On-chain data shows that the historic 20-day MA Bitcoin aSOPR support level has been maintained to date.
Bitcoin 20-day MA aSOPR bounces off historic support line
As noted by an analyst in a CryptoQuant afterrecently the BTC aSOPR retested its 8 year old support.
The “Spent output profit ratio(or SOPR for short) is an indicator that tells us whether the average Bitcoin investor is currently selling at a profit or loss.
When the value of this metric is greater than 1, it means that the overall market is currently moving coins with some profit.
On the other hand, values of the indicator that are below the threshold suggest that holders as a whole are currently making some loss with their sales.
Of course, SOPR values exactly equal to 1 imply that the investors are currently just breaking even on their investment.
“Adjusted SOPR” (aSOPR) is a modified version of this metric that excludes any sale of coins from the data made within 1 hour of first acquiring those coins.
Here is a chart showing the trend in the Bitcoin aSOPR 20-day moving average over the past few years:
Looks like the 20-day MA value of the metric has sharply declined in recent days | Source: CryptoQuant
As you can see in the chart above, the 20-day MA is aSOPR went down quickly after the FTX crash, reaching a low of 0.93 about a week ago.
This level was the same as during the lows of the previous bear markets, and each of the touches in those bears launched the stat back up.
The support line has now been active since 2014 and in the 8 years so far, the indicator has never seen any real drop below it.
Since the retest of this support level a week ago, the statistic has already bounced back up, suggesting that this important support line is still holding at this point.
However, it is uncertain whether this successful retest means that the bottom is now in. In the bear of 2018/19 that was indeed the case, but in 2014/15 it took two touches of the line for the real bottom to form.
BTC price
At the moment of writing, The price of Bitcoin floating around $16.8k, up 3% over the past week. Over the past month, the crypto has lost 18% in value.
The chart below shows the trend in BTC price over the past five days.
The value of the crypto seems to have been moving sideways since the surge | Source: BTCUSD on TradingView
Featured image from André François McKenzie on Unsplash.com, charts from TradingView.com, CryptoQuant.com