Bitcoin (BTC) fell to a major support level from $ 44,000 to $ 45,000 on February 28 for the third time in the past week.
The BTC / USD pair fell briefly below $ 44,000 on Bitstamp before balancing some losses, and is back to the $ 45,000 mark at the time of writing.
The complete convenience of SOPR, financing rates
Some analysts pointed to the increase in miner sales as the reason for the recent price drop.
Fortunately, the third test at this important support level may be silver bull food. Data Analytics Supplier Glassnode notes that Bitcoin’s Daily Output Profit Ratio (SOPR) has undergone a “complete reset”
The SOPR basically shows whether the products used are included in profit or loss at the time of the transaction. This headline reading was negative for the first time since September 2020. In other words, investors are now moving Bitcoin with a slight loss on average, indicating a decline in profits, according to Glassnode.
Analysts added: “In general, yesterday we witnessed a net realized loss of $ 243 million.”
“This is the lowest daily reading since April 2020.”
Bitcoin financing rates. Source: Bybt.com
Meanwhile, acclaimed trader Philip Swift, co-founder of the Decentrader Trading Package and founder of the Gold Ratio Multiplier method, has indicated the collapse of SOPR.
He sees this as a possible upward turning point for the bitcoin price, along with a change in derivative financing rates last week, as such events previously coincided with the start of new trends.
“The SOPR has now been reset (in green on the chart), which means that the portfolios being sold are now selling at a loss,” he explained, adding:
“This is a strong buy signal in a bull market. Along with zero derivative financing, it is bullish.”
The price of BTC vs SOPR. Source: DecenTrader / TwitterPositiveCrypto
The last time SOPR turned green was five months ago, when Bitcoin was trading at around $ 10,000. At the time, this was an important obstacle for BTC to launch a new beef market. Since then, the price has more than quadrupled to around $ 58,000.
However, many traders are concerned when entering the market in March, which has been historically bearish for cryptocurrencies and all markets in general.
“I think March may be slow due to a lack of confidence in the traditional markets, but overall I am optimistic about Bitcoin and I expect significant gains in the next three months,” Swift said in a special commentary.
$ 44K – $ 45K is still the most important level to look at
Meanwhile, Bitcoin traders are closely monitoring the $ 44,000- $ 45,000 level. Trader Willie Wu, for example, says that the $ 45K level is a very strong support and he expects any dip below this level to be bought aggressively if it occurs.
Additionally, researchers at analysis firm Santiment believe that the entire cryptocurrency market is now dependent on bitcoin ownership above this key level.
They said, “It has been a red weekend so far, and most people have been paying attention to Bitcoin as it has rallied in the direction of the growth of the alternative digital currencies.”
Watch for BTC support level of $ 44,000 as an indicator to monitor the entire cryptocurrency. Plus BTC activity on the network.