BitcoinThe market price has taken continuous hits during the week. While Bitcoin started the week facing stiff resistance near $ 11k, a selloff soon pushed its value down 6.32%, with the digital asset again valued at $ 10.2k. As BTC tried to rebound from this drop, on September 23, the price collapsed again, after touching $ 10.5k on the charts.
Buy the dip?
With institutional interest flowing into BTC On a large scale, institutions are certainly buying every drop that comes their way and others should too. BTC’s on-chain data recovery is a tell-tale sign of the next trend. For example, the Spent Product Profit Rate indicator [SOPR] by Glassnode, a supply of on-chain information, was the last to highlight such buying opportunities in the BTC market.
The SOPR fell below 1 on September 22, a clear indicator that this is an opportunity to buy the decline. Interestingly, the SOPR, however, had managed to recover almost immediately.
A SOPR value below 1 suggests that stakeholders are selling at a loss, or simply, the asking price was lower than the price at which it was bought, a great opportunity for buyers to buy the digital asset at a price lower.
However, it should be noted that this was not the first time that a buying opportunity had made its way into the BTC market. Last week, the SOPR indicator fell below one for the first time since April. However, like this time, the metric quickly recovered and did not confirm a downtrend. According to market watchers, these brief drops are signs of an early bull market, one that could be confirmed after we see the huge BTC Options expire this week.
88,000 BTC expires on Friday
Almost 88,000 BTC options will expire on Friday and according to Sesgar, open interest has briefly recovered its peak.
Given the considerable volume of contracts, expiration can bring down the price of BTC, at least briefly, a development that could again lead to an opportunity for market buyers. Time to wait and look at this metric and keep buying these dips before the market starts a full rally.
This is a machine translation of our English version.
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