Crypto Market Crash: Bitcoin SOPR Hints At ‘Buy The Dip’ Opportunity

Since the price of Bitcoin (BTC) fell below the $100,00 mark on January 7, it has continued to experience intense volatility amid a push for a rebound. With investors staying cautious, market data tracker CryptoQuant has hinted at a “buy the dip” opportunity traders must watch out for. 

Hopes for Bitcoin (BTC) Price Amid SOPR Signal

According to the insight from CryptoQuant’s Analyst MAC.D, the more short-term investors experience pain, the better the buying opportunities. He noted that as the BTC price dropped, the negative headlines on social media skyrocketed. Despite the ongoing price correction, he said this means the market is turning bearish.

MAC.D pointed at the Spent Output Profit Ration (SOPR) indicator to confirm waning sentiments. Per the CryptoQuant data, the SOPR is now pegged at 0.987. This proves that Bitcoin investors who have held the coin for 6 months or less are selling at a loss.

Short-term SOPR below 1, a good time for accumulation

“As short-term investors experience more pain, it often presents better opportunities for accumulation.” – By @MAC_D46035

Further details https://t.co/gNGhFcp7DB pic.twitter.com/BOUJjBFzGp

— CryptoQuant.com (@cryptoquant_com) January 10, 2025

Drawing on historical trends, MAC.D said the market is always known to rebound whenever short-term investors are selling. He reiterated that this is the right time to accumulate or “buy the dip.”

Has Bitcoin Hit Cycle Top?

The CryptoQuant Analyst said cycle indicators like the MVRV, NUPL, Puell Multiple, and the short-term investor ratio (now at 60%) all prove that Bitcoin has not hit its cycle top.

Driving the crypto market fall in the past 24 hours, Bitcoin price hit a low price of $91,220.84. At the moment, BTC is changing hands for $95,726, up 3.16% in 24 hours. Despite the earlier drawdown, MAC.D said the selloff does not signal the end of the upward cycle.

The analyst said if short-term investors continue to sell their BTC, smart ones might accumulate at a discount. He concluded that selling now might be “a very unwise decision.”

More Volatility Ahead of Trump’s Inauguration

Bitcoin price has shown that it remains a volatile financial asset that reacts to even macroeconomic conditions. Earlier this week, there were reports that the U.S. Department of Justice has received the green light to liquidate about $6 billion in BTC seized from the Silk Road marketplace.

The market tumbled in response to this update. However, industry leaders like Bitwise CIO Matt Hougan reassured the market would absorb and buy back the BTC should the U.S. government sell. Despite these assurances, the coin has yet to recover.

With expectations on the incoming Donald Trump administration to do right by the industry, the volatility might increase more in the coming days.

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