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Did yesterday's declines indicate capitulation, with investors selling at a loss?
The Adjusted Output Profit Ratio (ASOPR) is a ratio that calculates the proportion of spent outputs (outputs that have been active for more than an hour) that are currently in profit. This ratio is determined during a specific time window. The adjustment made in this analysis excludes the movements of coins that have been active for less than an hour. Values greater than '1' indicate that more investors are selling Bitcoin at a profit, while values below '1' indicate that more investors are selling at a loss. A value of 0.93 is considered to be in the capitulation area. During the first and second Bear periods, the ASOPR acted as resistance each time the price of Bitcoin increased and the ASOPR value approached 1. Strong rejection was observed in these instances. In the current 'bull' market phase, the ASOPR has been acting as significant support. Generally, investors have been selling Bitcoin at a profit, except during two instances of capitulation when the price dropped to 19.5k on March 7, 2023, and March 30, 2023. We can talk about capitulation when the value is go around 0,93 which means the investors selling Bitcoin at a loss. After yesterday's dump, it was a normal price correction because ASOPR was neutral. (value 0,99). *Past results don't guarantee future results. Remember to risk management.