Bitcoin Dips Below $95K: Powerful Opportunity to Accumulate?

• Bitcoin drops to $90K, but onchain data points to buying chance.
• SOPR below 1 signals market bottom, suggesting recovery ahead.
• MVRV and other metrics indicate Bitcoin’s cycle is far from peaking.

Bitcoin’s price recently dipped below $95K after a strong rally, but market data suggests the current price drop may be a prime opportunity for long-term investors. Onchain indicators and key metrics are pointing toward potential gains ahead

Bitcoin Correction is an opportunity

Bitcoin (BTC) has recently dipped below $95,000, which attracted market attention to potential buying opportunities. The price of Btc plunged to near $90,000 during U.S trading hours which marked a %10 drop from the weekly high. However, investor behavior data suggests the current dip could offer favorable conditions to enter the market.

Onchain data reveals a recovery in Bitcoin’s Spent Output Profit Ratio (SOPR) which is currently at 0.987. This level indicates that short-term investors holding for less than six months are selling at a loss. Historically, such scenarios have come before price recoveries and potentially signals a buying window for long-term holders.

Indicators such as Market Value to Realized Value (MVRV) and the Puell Multiple further indicate that Bitcoin’s cycle has not yet reached the peak. Even with the recent correction, the data still points to continued bullish momentum. Additionally, the short-term investor ratio, currently at 60%, shows that the market is not yet in the overbought territory.

Bitcoin Dips Below $95K: Powerful Opportunity to Accumulate? 4

Although Bitcoin is experiencing a short-term dip, this could present more attractive opportunities for strategic investors to purchase BTC and enter the market. Those buying at these lower levels might benefit from a future price recovery. Thus, selling at current prices could prove to be a missed opportunity for long-term gains.

SOPR, a major indicator of market sentiment, compares the value of spent Bitcoin outputs to their original value. When SOPR is below 1, it indicates market capitulation and could indicate a potential bottom will happen in the near future. Currently, a negative SOPR points to a moment of investor panic but historical trends suggest that it could be a suitable time to accumulate.

Bitcoin Dips Below $95K: Powerful Opportunity to Accumulate? 5

The latest U.S economic data, such as a strong Institute of Supplies Management (ISM) report, contributed to the recent dip in Bitcoin’s price. U.S. Treasury yields surged after the report, which led to a huge decline in risk assets such as BTC. The strength of the U.S. economy, indicated by figures such as non-farm payrolls (NFP), may lead to interest rate hikes that could negatively affect risk assets. Traders are anticipating the release of a U.S non-farm payrolls on January 10.

Short-term investors appear to be selling at a loss in the current market conditions, creating opportunities for buyers to acquire Bitcoin at a cheap price. If the price continues to drop, these investors will likely offload their positions, giving long-term holders a chance to accumulate. Therefore, the current market correction could be a strategic entry point rather than a sign of market exhaustion.

Investors should keep an eye on critical metrics like SOPR, MVRV and the Short Term Investor Ratio. The current correction may offer a good opportunity to accumulate Bitcoin before the next market cycle starts.