The Bitcoin Bears (BTC) are “exhausted” and even selling at a loss this week, confirm recent data.
On a tweet on Tuesday, Philip Swift, an analyst at trading platform Decentrader, noted an ongoing uptrend in the profit on product spent index (SOPR).
Bitcoin bears flee the FUD
SOPR, a classic metric for determining oversold periods in Bitcoin markets, among other things, has changed from “sell” to “purchase” for the first time since July last week.
Last time, the BTC/USD hit local highs of $53,000 in subsequent weeks, and now there are high hopes that a repeat will materialize.
“We’ve seen more network sales at a loss in the last few days,” commented Swift.
“It’s an upbeat moment, especially after the aggressive summer selling. The bears are getting exhausted. It’s time for the bitcoin bulls to take over very soon. ”
SOPR is far from being the only component of the Bitcoin market that calls for a return to a bullish rally. The investors themselves are betting on the continuation, increasing the big and small positions despite last week’s price drop.
a reduction drastic ongoing supply of available net BTC has the potential to exacerbate a spot price squeeze, observed others.
MicroStrategy even stronger
One group of BTC investors that is certainly not selling are institutions, evidenced by the purchase of 5050-BTC from MicroStrategy announced on Monday.
For analyst Willy Woo, who released an updated chart of BTC’s corporate holdings, it is now increasingly apparent that the company is acting as Bitcoin’s custodian for third parties.
“In case people wonder why MicroStrategy is such a big incumbent. I think public companies find it easier to buy a MicroStrategy convertible debt instrument to gain exposure to BTC than to hold the underlying asset. IMO MicroStrategy owns the BTC for many companies”, he wrote him in a discussion on Twitter.
MicroStrategy’s total BTC allocation is now in excess of 114,000 BTC, with its average purchase price just above $27,700 – 40% below the current spot price.
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