Despite the market cryptocurrency Having suffered massive losses due to the recent bear market, Chartoday – an educational resource on technical analysis – claims that Bitcoin have yet to hit most of the “bearish targets”.
According to a post On the on-chain analysis website CryptoQuant, the Spent Output Profit Ratio (SOPR) has not shown any sign of bottoming yet. SOPR measures whether a coin is being sold at a profit or a loss. A value greater than 1 means that the coin is sold at a profit and vice versa.
The index has only recently dropped below 1. However, this event has historically coincided with price consolidations and pullbacks during past bear markets.
The whole market cryptocurrency has now fallen to lows not seen since December 2020. The Relative Strength Index (RSI) of Bitcoin – a momentum indicator to determine whether an asset is overbought or oversold – also hit an all-time low.
"BTC is approaching the cyclical bottom. Currently, UTXOs over 6 months account for 62% real capitalization. During the big sell-off in March 2020, the index also hit 62%.”
Bitcoin Output Return Ratio (SOPR) | Source: CryptoQuant