gigisulivan
Short term SOPR flagging the local bottom is in
Tonight an alert on short term SOPR popped up and since it has been quite reliable in the past to indicate local and cycle tops and bottoms, every trader or investor should not ignore it. Although there were no significant spikes to flag tops this year, as with pretty much every metric onchain, signal levels flatten out. That is why we should take this spike under 0.94 with even more confidence as a sign of current leg down dying down. (see screenshot from ProChart by @CryptoMe This has also confirmation in technical analysis as Bitcoin is oversold on 3D and Daily timeframes, as well as simple sentiment fear and greed index has been at Extreme fear levels for quite some time. It highly corresponds with "dead cat bounce"/death cross setup I was outlining couple of weeks ago. Only thing that needs revising is the most likely range for this move up to end before continuation to down trend, considering how low we have gone this week and how previous setups post BTC bull run tops, most likely range sits between 99-105k, with lower probability of some move closer towards 50SMA on 3D to mimic the 2021 setup. Next 15 days should give us the main boost up, although it is very likely Bitcoin's price will then range between 78-105k for the next few months until mid February. A lot of course depends on Stock Market volatility and the likes of SPX has quite a lot of room to fall before calling it even mildly oversold. If Bitcoin's price pushes up above 100k quite fast, be prepared to see Bulls coming out with "Santa's rally" narrative and if we see over 105k, more people calling for new ATH and other bullish posts to get retail folks back into the market on false hopium. This phase is just normal part of Bitcoin "preparing" for the next main phase of Bear phase.