This week, Bitcoin’s price dropped below $50,000, but it has since made a strong comeback. The most valuable coin lost more than sixteen percent of its value due to concerns about the world’s financial markets and the US economy.
It has since recovered and is now worth about sixty thousand dollars. Analysts of the market are laying out the conditions that Bitcoin needs to keep going in the right direction.
An analyst named “tugbachain” wrote a recent QuickTake post on Cryptoquant about the Short Term Holder Spent Output Profit Ratio (STH SOPR). This is a key measure that shows whether short-term BTC holders are selling at a profit or a loss.
Bitcoin Hits Resistance Level
The STH SOPR shows how profitable assets that have been kept for less than 155 days are. A value below 1 means that sellers are losing funds, and a value of 1 means that they are making funds.
The STH SOPR for Bitcoin is above 1 right now, which means that short-term users are making funds. The expert does warn, though, that Bitcoin is getting close to a strong resistance level at 1.03 SOPR. This is where more selling could push the price down. Despite this, BTC might be able to get past this resistance and keep going up if strong buying activity continues.
Bitcoin’s price has gone up by 1.01% in the last 24 hours, to $60,639. However, the daily trade volume has gone down by 4.35%, to $38.2 billion. Based on past prices, if Bitcoin breaks out of its current stabilization and goes up, it might face substantial obstacles between $67,000 and $70,000. On the other hand, if prices go down, the next level of support could be around $55,000.
