Bitcoin on February 8, 2023: the moment of truth

End of winter? Bitcoin (BTC) price continues to swing back and forth across $23,000. Beyond this routine, these indicators show that the structure of the markets may be tipping in favor of the bulls.


SOPR finally back above 1 for Bitcoin price

Bitcoin price drops as low as $22,691 on Bitfinex today, February 8, 2023. The cryptocurrency is trading at $22,961 at the time of writing this article. Its price is currently recording a daily loss of 1.25%.

While Bitcoin remains around $23,000, and appears to be struggling to sustainably break through the $23,400 resistance for continued bullishness, analysts are pointing to indicators that show the cryptocurrency may soon experience further upside. new increases.

In a series of tweets, the Whalemap team shared their analysis on the price of Bitcoin, based on the value of the Spent Output Profit Ration (SOPR). She noted that, typically, “SOPR stays below 1, rarely reaching values ​​>1,” during bear markets. And during bull markets, this indicator “usually stays above 1 and rarely drops below 1.”

However, currently, Whalemap analysts point out that “the SOPR is as high as it has been since November 2021″, and that it is ” finally above 1 “. In view of this rise in the SOPR after more than a year in the red, as shown in the graph below, “it could mean that the Bitcoin finally converts into a bull market “.

Bitcoin price and SOPR
Publication of Whalemap – Source: Twitter

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An exit from bear markets, according to the Williams %R at 12 months

Whalemap is not the only one to point to an indicator, which could announce a return to good weather on the markets. Caleb Franzen, Senior Market Analyst at Cubic Analytics, looked at the behavior of the %R Williams oscillatorwhich is used in particular to measure the strength of a price trend.

According to Caleb Franzen, “bitcoin’s 12-month Williams%R oscillator left the ‘oversold’ threshold at January’s monthly close! “. Historically, when this oscillator left the “lower limit”, the markets witnessed two events: the bottoming out of the cycle and the end of bear markets.

The chart below, which parallels the fluctuations of the Williams%R with that of the price of Bitcoin, shows that the current situation is similar to that of April 2019, when the cryptocurrency exited the bear markets, to start a long journey that will take it to its historic peak in November 2021.

BTC USD and Williams%R
Publication by Caleb Franzen – Source: Twitter

However, despite this optimistic outlook, Caleb Franzen warns that only the 12-month Williams%R has moved higher. The Williams%R at 18 months is still “ oversold “.

These indicators and the recent golden cross point to a sustained return of bulls to the markets. Meanwhile, this optimistic outlook is not reflected in the daily swings of Bitcoin price, which still fails to continue its gains above $23,400.

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