Important takeaways
- Short-term Bitcoin investors are selling at a loss, creating potential accumulation opportunities.
- Indicators such as MVRV and NUPL suggest that the Bitcoin market remains in an uptrend.
Bitcoin’s decline has created an excellent opportunity for accumulation, according to CryptoQuant analyst Mac_D.
The token has shown no signs of strength after selling off from weekly highs of $103,000 on Monday, but long-term metrics suggest the market’s uptrend remains intact.
Analyst MAC_D reported on Thursday that the current bearish sentiment is consistent with a dip in Bitcoin’s short-term Spent Output Profit Ratio (SOPR), which has fallen to 0.987.
This metric indicates that investors holding Bitcoin for less than six months are now selling at a loss.
MAC_D noted that such periods of short-term investor losses have historically presented favorable accumulation opportunities.
“When short-term investors incur losses, long-term cycle indicators such as MVRV, NUPL and Puell Multiple often show that the market is still in an uptrend,” he said.
He added that the current correction does not indicate a cycle top, and savvy investors can take the opportunity to accumulate Bitcoin at discounted prices.
Historical data indicates that long-term investors often step in to accumulate Bitcoin during market corrections as short-term holders sell at a loss.
This behavior, which is often observed during market corrections, can set the stage for a price recovery when selling pressure subsides. At press time, Bitcoin is trading at $93,500.
