As the crypto market gears up for a potential bull run in 2025, analyst IonicXBT has shared his comprehensive guide on how to identify the Bitcoin market top in this cycle. The analysts’ guide is based upon the SOPR (Spent Output Profit Ratio), one of the lesser-known but highly useful metrics for analyzing Bitcoin.
IonicXBT Detailed SOPR Metric Guide
IonicXBT on X (formerly twitter) told his 125,000 followers that the SOPR metric has consistently accurately predicted the tops of previous crypto market cycles, citing instances of 2018 and 2021. The SOPR is a metric that tells us whether the average investor in the Bitcoin market is selling their coins at a profit or at a loss right now.
When the indicator has a value greater than 1, it means that the average holder in the sector is selling their coins at some profit right now. On the other hand, a value under this threshold implies that loss-selling is dominant among the participants. According to the chart he dropped, he seemed to think that Bitcoin’s moving average SOPR has fallen below 1.0, indicating that most spent outputs are being sold at a loss.
He further highlighted that the current drop in SOPR indicates that the bottom of the correction is near, suggesting that the market is not yet close.
Interestingly he urged his followers to remain calm as he emphasized on the significance of SOPR spikes, noting that they often signal market tops as long-term holders lock in profits. He further assured them of his commitment to providing accurate signals for identifying the market top which focuses on real strategies backed by data rather than hype or speculation.
“But don’t worry, I’ll be the first to give you the signal of the top. No hype, no nonsense, Just real strategies backed by data,” the analyst said.
Alternative Guide To Know The Bitcoin Market Top Cycle
While IonicXBT has highlighted the SOPR metric as a valuable tool for predicting market tops, other analysts, such as Kaleo, have shared alternative indicators. Kaleo has presented an inverse Bitcoin chart suggesting that BTC could reach the trendline of his logarithmic growth curve by next year, potentially soaring to a massive price target of around $220,000.
In a recent post, Kaleo expressed growing bullishness, stating, “Alright, I’m giving in. Be more bullish.” Analyzing the inverse chart, he suggests that Bitcoin tends to experience steep rallies a few months after its halving event, when BTC miner rewards are slashed in half.
Kaleo believes that Bitcoin will consolidate for a few more days before initiating surges that break through multiple resistance levels. Based on the chart, he appears to predict that Bitcoin will reach new all-time highs by early next month. At the time of this writing, Bitcoin is valued at $62,092, up over 3% for the day.
Featured image created with Dall.E, chart from Tradingview.com
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