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This historic bitcoin on-chain support level is still not lost

On-chain data shows that the historical 20-day MABitcoin-aSOPR support level has continued to date.

Bitcoin 20-day MA aSOPR recovers from historical support line

As one analyst pointed out in a CryptoQuant post, BTC aSOPR recently retested its 8-year-old support.

The Spent Output Profit Ratio (SOPR for short) is an indicator that tells us whether the average Bitcoin investor is currently selling at a profit or at a loss.

If the value of this metric is greater than 1, it means that the overall market is currently moving coins at some profit.

On the other hand, values ​​of the indicator below the threshold suggest that holders as a whole are currently realizing some loss on their sales.

Of course, SOPR values ​​that are exactly equal to 1 mean that investors are just breaking even with their investment.

Adjusted SOPR (aSOPR) is a modified version of this metric that excludes from the data all sales of coins made within 1 hour of the initial purchase of those coins.

Here is a chart showing the trend of the Bitcoin aSOPR 20-day moving average over the past few years:

This historic bitcoin on-chain support level is still not lost, Crypto Trading News

It looks like the metric’s 20-day MA has declined sharply over the past few days | Source: CryptoQuant

As you can see in the chart above, the 20-day MA aSOPR quickly declined after the FTX crash, hitting a low of 0.93 about a week ago.

This level was the same as during the previous bear market’s lows, and each of the touches in these bears brought the metric back up.

The support line has now been active since 2014 and in the past 8 years the indicator has never seen any real decline below it.

Since retesting this support level a week ago, the metric has already recovered, suggesting that this key support line still holds for the time being.

However, it is uncertain whether this successful retest means the bottom is now in. This was indeed the case in the 2018/19 bear, but in 2014/15 it took two touches of the line before the real bottom formed.

BTC price

At the time of writing, the price of Bitcoin is hovering around $16.8k, up 3% over the past week. Over the past month, the crypto has lost 18% in value.

The chart below shows the evolution of the BTC price over the last five days.

This historic bitcoin on-chain support level is still not lost, Crypto Trading News

The value of the crypto appears to be moving sideways since the surge | Source: BTCUSD on TradingView Featured image by André François McKenzie on Unsplash.com, Charts by TradingView.com, CryptoQuant.com

Source: Crypto News Deutsch

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