MAC_D2024-01-29

BTC Short Term Holder SOPR Losses, DCA Opportunities

Short-term holder SOPR is a SOPR (realized profit/loss) metric calculated only for coins held for more than 1 hour and less than 155 days. An indicator of whether investors who have held a coin for a short period of time and then traded it in the past have made a profit, with a value above 1 indicating a high percentage of investors have realized a profit on a short-term investment, and a value below 1 indicating a high percentage of investors have realized a loss. Recently, the metric has been showing values below 1, which means that short-term investors are dumping Bitcoin at a loss. This means that whale investors are likely to see this as a buying opportunity and buy up what short-term investors are selling, and the market is likely to rebound soon. However, rather than blindly trusting the indicator, we can at least use this as an opportunity to actively implement DCA, as it will allow us to buy coins at a good unit price if we buy into the split when the signal occurs.