BTC has been underperforming against altcoins ever since it slumped from above $42k to hit lows below $30K. Any attempt at a clear breakout above $35K has so far failed as bears work hard to slow the king coin’s ascent.
Investors who are bored by the current lackluster trading in the BTC market may not have long to wait for a return to the upside for BTCUSD. One market indicator is predicting a return to the Bull Run, giving investors cause for optimism.
As per the Bitcoin spent output profit ratio (SOPR) shared by on-chain analytics firm Glassnode, the current range-bound trading in bitcoin is almost complete.
The SOPR tracks whether hodlers are selling their coins at a profit or loss and can be a powerful tool to predict when the BTC price is about to reset and move higher. Once weak hands sell all they can, the BTC price usually rises as downward price pressure reduces.
While analyzing the SOPR, popular crypto analyst CryptoHamster agreed with Glassnode data showing that the current BTC consolidation will soon end.
“So, if we are in a bull market now, according to the SOPR the correction is not over yet, but it will end soon,” the analyst tweeted while sharing the chart below.
Investors Remain Wary as BTC Trades Below $35K
As BTC gears up for its imminent breakout, many investors remain cautious of further downside in the near term as long as the coin trades below one key level.
The bulls have struggled to surmount the critical $35K resistance over the past few days, with last night’s surge to $34,880 being the latest attempt to break above that level. Since then, the BTC price has pulled back below the $32K level.
BTCUSD Chart By TradingView
Loma, a pseudonymous crypto analyst, and trader pointed to this dwindling momentum, arguing that BTC trading under $35K could make altcoins more appealing for now.
Despite the latest sudden slump and ongoing consolidation in the BTC market, institutional investors are still buying the digital asset en mass. For instance, giant investment firm Grayscale today scooped up bitcoins dumped by panicking retail sellers, adding almost 1000 coins to their coffers.
ETH Trims Gains But Holds Above $1,300
Ether has trimmed almost 8% off its price just hours after it secured a new all-time high at $1,480. The top altcoin is still trading in a positive zone despite its earlier decline and failure for the bulls to test the $1,500 resistance zone.
The ETH price is currently up 2.8% on the hourly chart at its price of $1,312 on CoinMarketCap as bulls attempt a fresh increase.