Bitcoin On-Chain Data Signals Buying Opportunity as BTC Approaches $95K

What to Know

• Bitcoin’s Spent Output Profit Ratio (SOPR) has increased to 0.987 as of Friday.
• Historically, SOPR levels near this value often precede price recoveries.
• This data suggests a potential buying opportunity for investors.

Bitcoin (BTC) climbed to $95,000 in European morning trading on Friday, recovering from a Thursday night dip to $90,000 during U.S. hours. The digital asset is down 10% from its weekly high of $120,000, but on-chain metrics suggest this correction could present an attractive buying opportunity.

Key Indicators Signal Market Potential

Recent data shows Bitcoin’s Spent Output Profit Ratio (SOPR) has reached 0.987, indicating that short-term investors—those who have held BTC for less than six months—are selling at a loss. Historically, such market conditions often precede price recoveries, marking a potential entry point for savvy investors.

According to CryptoQuant analyst Mac_D, this phase of short-term investor losses creates opportunities for “smart investors” to accumulate coins at discounted prices. He emphasized in a Thursday post that selling BTC during this period might be “an unwise decision,” as similar scenarios in the past have frequently led to price rebounds.

Supporting Metrics Strengthen the Case

Other widely followed metrics, including Market Value to Realized Value (MVRV) and the Puell Multiple, also suggest that Bitcoin’s market cycle has not yet peaked. An MVRV ratio compares Bitcoin’s market cap to its realized cap, helping gauge whether the asset is overbought or oversold. Meanwhile, the Puell Multiple evaluates the profitability of miners, providing further insights into market cycles. Together, these indicators point to a market that remains in a bullish phase despite this week’s correction.

Macroeconomic Factors Impacting Bitcoin

Thursday’s price slump was triggered by stronger-than-expected U.S. economic data. The Institute for Supply Management (ISM) reported a surge in service sector prices, with the prices-paid index reaching its highest level since early 2023. This drove U.S. treasury yields higher, pressuring risk assets like Bitcoin and equities.

Why This Matters

As on-chain metrics suggest a market recovery may be on the horizon, this price dip could represent an ideal accumulation phase for long-term investors. Historically, Bitcoin’s SOPR levels below 1, combined with favorable MVRV ratios, have signaled market bottoms, paving the way for upward momentum.

Investors should monitor these indicators closely as BTC’s current price levels may offer significant upside potential in the coming weeks.