TradingView News: CryptoQuant Analysis Suggests a Looming Downturn for Bitcoin After Recent Rally

A CryptoQuant market analyst has recently indicated that Bitcoin could be on the brink of a significant price adjustment. This forecast of a potential market retraction stems from key Bitcoin indicators, such as the Adjusted Spent Output Profit Ratio (ASOPR), which hints at an important shift in Bitcoin’s price course.

The Significance of ASOPR in Anticipating Bitcoin Price Adjustments

In the realm of cryptocurrency analytics, the ASOPR plays a vital role. It calculates the profitability of spent transactions by contrasting the acquisition price of coins with the price upon sale.

The CryptoQuant market analyst highlights that an ASOPR value over 1 is indicative of profitability in sales, typically associated with optimistic market sentiments.

Historical trends draw attention to an ASOPR value near 1.08 as a crucial juncture; beyond this point, markets often pivot towards a decline, suggesting a forthcoming correction period.

This trend has emerged repeatedly across numerous market periods, becoming an insightful metric for traders to determine the state of the marketplace. Specifically, an ASOPR value rising past 1 but approaching 1.08 may trigger investors to reconsider their portfolios in anticipation of possible market downturns.

The observations made by the analyst at CryptoQuant include the following remark:

Another focal point in the analyst’s examination of the Bitcoin market is the 200-day moving average (MA), a renowned gauge of the market’s enduring tendency.

This measure serves to streamline price data by providing a regular calculation of the average price, which can be decisive in affirming the overall trend of the market. A climbing 200-day MA implies a sustained upward trajectory, whereas a downward trend may signal bearish tendencies.

The current position of Bitcoin below this critical moving average endorses the cautious perspective implied by the ASOPR data, as demonstrated by the analyst’s shared charts.

With its current valuation at $64,000, showing a 14% retracement from recent highs, the merger of these analytical pointers suggests that the market may still be in a stage of reassessment and eventual adjustment.

Persisting Stagnation of Bitcoin’s Value

The prediction from the aforementioned metric is apparent, seeing that Bitcoin’s price persists in declining despite significant constructive events in the sector.

Today, Standard Chartered Plc advanced into the cryptosphere with the inauguration of a novel Bitcoin and Ethereum spot trading desk, a noteworthy leap by a significant global banking player.

Moreover, the Winklevoss twins, creators of Gemini, threw their support behind Donald Trump’s presidential bid, generously contributing $1 million each to his campaign because of his Bitcoin-friendly stance.

Nevertheless, such positive industry events have not translated into a surge for Bitcoin’s price, which has dropped by 1.1% in the last 24 hours to a recent figure of $63,935.

Analyst Ansem surmises that a significant uplift in Bitcoin’s price may linger until later within the year, predicting it will fluctuate within the $58,000 to $60,000 bracket for a duration.

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