The price of Bitcoin (BTC) has dropped to the key $44,000-$45,000 support level on Feb. 28 for the third time in the past week.
The BTC/USD pair briefly dipped below $44,000 on Bitstamp before paring some of the losses, bouncing back above $45,000 at the time of writing.
‘Full rest’ for SOPR, funding rates
Some analysts have pointed out an uptick in miners’ selling as the reason behind the latest drop in price.
It’s a whale war, and you know who got the real power.
US Institutional Investors
– Coinbase Outflow = STRONG BUY
– Coinbase Premium = BUY
– BTC Reserve = BUY
– Stablecoin Inflow TXs = BUY
– Miner Outflows = SELL
– Miner to Exchange Flows = SELL pic.twitter.com/fhVBp8qocm
— Ki Young Ju 주기영 (@ki_young_ju) February 28, 2021
Fortunately, the third retest of this key support level may have a silver lining for the bulls. Data analytics resource Glassnode noted that the daily Bitcoin Spent Output Profit Ratio (SOPR) has seen a “full reset.”
The SOPR essentially shows whether spent outputs are in profit or loss at the time of transaction. This key metric turned negative for the first time since September 2020. In other words, investors are now moving BTC at a slight loss on average, suggesting that profit-taking has abated, according to Glassnode.
“In total, we saw an on-chain net realized loss of $243 million yesterday,” the analysts added.
“That is the lowest daily value since April 2020.”
Meanwhile, popular trader Philip Swift, the co-founder of trading suite Decentrader and creator of the Golden Ratio multiplier method, also pointed out the SOPR crash.
He considers this a potentially bullish turnaround for BTC price in combination with last week’s reset of derivatives funding rates because such events have previously coincided with the start of new uptrends.
“The SOPR has now reset (green on the chart) meaning that wallets selling are now…