Flow

Bitcoin

Change

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>The STH-SOPR and Stock to Flow ratio indicators suggest a potential price increase for Bitcoin.</li> 
 <li>Bitcoin’s value might not drop as low as $54,000 before a reversal to the upside begins.</li> 
</ul> 
<p> The STH-SOPR and one other indicator suggest that a price increase for Bitcoin is on the horizon. The surge in the Stock to Flow ratio supports this potential price increase. </p> 
<h2 id="understanding-price-predictions">Understanding Price Predictions</h2> 
<p>The STH-SOPR is a key factor in this prediction. STH stands for Short-Term Holder, while SOPR stands for Spent Output Profit Ratio. This metric indicates whether Bitcoin holders who purchased the coin within a 155-day window are selling at a loss or profit.</p> 
<p>If the value is below 1, it means the holders are selling at a loss. However, if the value is above 1, it suggests that they are selling at a profit. Currently, the reading is exactly 0.99, a crucial point for Bitcoin, as it could go either way.</p> 
<h2 id="indicators-of-change">Indicators of Change</h2> 
<p>In the past, a reading below 1 marked the end of a downtrend. Therefore, if the STH-SOPR remains below the threshold for some time, Bitcoin’s price could be preparing to erase some of its recent losses.</p> 
<p>This doesn’t mean that Bitcoin’s prediction to $61,000 or $60,000 won’t happen. Instead, it implies that the coin’s value might not drop as low as $54,000 before an upward reversal begins.</p> 
<p>Another indicator supporting this forecast is the Bulls And Bears provided by IntoTheBlock. This metric compares the addresses that bought more than 1% of the 24-hour trading volume to those that sold more than 1% within the same period.</p> 
<h2 id="bullish-signs">Bullish Signs</h2> 
<p>If the addresses that bought outweigh the addresses that sold, it is a bullish sign. Currently, the Bulls And Bears indicator is +2 in favor of bulls. While this might not have an immediate effect on Bitcoin, maintaining this position over the coming days to weeks could help end Bitcoin’s correction.</p> 
<p>If this is the case, Bitcoin’s price could begin a move that takes it back to $66,000. The Stock to Flow ratio, which spiked to 640 on June 23rd, also supports a price increase.</p> 
<p>This ratio measures an asset’s vulnerability to inflation and its scarcity. A low reading indicates a high inflation rate, making it difficult for the price to increase in the mid to long-term. However, a high reading suggests that Bitcoin has a low inflation rate, meaning the value might retain a high level of price increase over time.</p> 
<p>Given this data, Bitcoin might recover within a short period. However, this prediction could be invalidated if large investors in Bitcoin continue to sell some of their holdings.</p>

Bitcoin on the Rebound? Crucial Elements Driving its Potential Uptick

Table of Contents

CoinEagle.com

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