Bitcoin flashes another bottom signal as aSOPR hits lowest since 2018

The  Adjusted Spent Output Profit Ratio (aSOPR), a metric that indicates whether holders are selling astatine a nett oregon loss, recorded a downward trajectory beneath the 1-level, which suggests investors are selling their positions astatine monolithic losses. 

According to CryptoSlate analysis, the aSOPR provided by Glassnode usually signals the modulation to a bull marketplace erstwhile investors recognize precocious losses during the carnivore market. Holders springiness up with existent conditions astatine this point, and the capitulation deepens. Therefore ushering buy-the-dip opportunists, who are driving important accumulation, contempt the BTC marketplace witnessing 1 of the astir important capitulation events successful 4 years. 

As depicted successful the graph below, the inclination successful Bitcoin’s aSOPR shows a caller downward trajectory beneath 1. As a result, the indicator’s worth presently lies astatine a level past witnessed successful 2018 erstwhile the bearish rhythm reached its bottom.

Fluctuating aSOPR levels suggest break-even traders, and the indicator trending upwards supra 1 indicates profit-taking, which usually takes spot earlier a carnivore market. For example, the $21K Bitcoin terms level was an absorbing portion for profit-taking successful October, arsenic was indicated by that time’s aSOPR. 

However, further terms declines successful November amid the FTX clang saw holders proceed connected the inclination of selling astatine a loss.

As the FTX insolvency continued ravaging the markets and adding much turmoil to an already one-year-long bearish cycle, holders continued to recognize much losses hence adjusting the aSOPR to awesome wide BTC capitulation.

Additionally, the aSOPR shifted to humanities lows past seen earlier the 2018 carnivore marketplace transitioned to bullish, which could signify the existent rhythm is approaching a bottom. 

The lone quality close present is the 2018 bottommost featured little lows compared to the existent bottom. Therefore it is inactive uncertain whether the marketplace has yet reached a modulation point. 

The station Bitcoin flashes different bottommost awesome arsenic aSOPR hits lowest since 2018 appeared archetypal connected CryptoSlate.