The historical 20-Day MA Bitcoin aSOPR support level has so far held, according to on-chain data.
20-Day MA aSOPR for Bitcoin Rises Off Previous Support Line
As pointed out by an analyst in a CryptoQuant post, the BTC aSOPR recently retested its 8-year old support.
When this metric's value exceeds 1, it indicates that the market as a whole is currently trading coins at a profit.
The indicator's levels below the threshold, however, indicate that sellers are currently experiencing some losses as a group.
The indicator's levels below the threshold, however, indicate that sellers are currently experiencing some losses as a group.
In a modified form of this metric called "Adjusted SOPR" (aSOPR), coins that were sold within an hour of their initial acquisition are not included in the data.
The trend of the 20-day moving average of the Bitcoin aSOPR over the past few years is depicted in the following graph:
The 20-day MA aSOPR significantly decreased after the FTX crisis, as shown in the graph above, and it just hit a low of 0.93.
The measure increased again each time it was touched during the previous bear markets, which had their lows at the same level as this one.
The support line has been in place since 2014, and in the eight years since then, the indicator has not actually dipped below it once.
The metric has already recovered since the retest of this support level a week ago, indicating that this crucial support line is still holding at the moment.
Though it's unclear if the bottom has officially been reached in light of this successful retest. It was true during the 2018–19 bear, but in 2014–15, it required two hits of the line before the actual bottom was created.
Bitcoin Value
The price of Bitcoin is currently hovering around $16.8k, up 3% in the previous week. The cryptocurrency's value has dropped 18% in the last month.
The trend in the price of BTC over the previous five days is depicted in the chart below.
