Bitcoin Near $95K Could Present an Ideal Buying Moment, Data Reveals

Bitcoin Tests $95K as Metrics Suggest an Ideal Accumulation Window Amid Macro Volatility

Bitcoin (BTC) traded just shy of $95,000 during European morning hours on Friday after slipping to nearly $90,000 late Thursday in U.S. trading—a 10% drop from its weekly high above $120,000.

While the decline was fueled by profit-taking and macroeconomic concerns, on-chain analytics suggest the current price range might be an opportune moment for buyers to enter the market.

On-Chain Data Hints at a Bottoming Phase

Glassnode’s data indicates that Bitcoin’s Spent Output Profit Ratio (SOPR) has dropped to 0.987, a level indicating that short-term holders—those who have held BTC for less than 155 days—are selling at a loss. Such behavior is often associated with market capitulation, a pattern historically linked to price bottoms and subsequent recoveries.

Market Value to Realized Value (MVRV) and other indicators, including the Puell Multiple, also suggest the market remains in a bullish cycle despite this week’s dip. A CryptoQuant analyst, Mac_D, observed that the correction may represent a short-term reset rather than a trend reversal.

“Periods of heightened losses for short-term holders often mark accumulation opportunities for long-term investors,” Mac_D wrote. “Further price declines could see shrewd buyers capitalize on discounted BTC, while panic sellers may regret exiting the market prematurely.”

SOPR and MVRV in Focus

The SOPR metric evaluates profit or loss for spent outputs, with a value below 1 signaling that coins are being sold at a loss. This often correlates with market bottoms as panic selling gives way to recovery.

MVRV, a ratio comparing Bitcoin’s total market cap to its realized cap, is another key measure. It provides insights into whether Bitcoin is undervalued or overvalued, helping investors identify potential accumulation periods.

Macro Uncertainty Weighs on BTC

Thursday’s decline followed robust U.S. economic data, which pushed Treasury yields higher and pressured risk assets. The Institute for Supply Management (ISM) reported stronger-than-expected performance in the U.S. services sector, with its prices-paid index hitting a 2023 peak.

Investors are now focused on Friday’s U.S. non-farm payrolls (NFP) report for additional clues on the economy. A strong labor market could prompt the Federal Reserve to consider further rate hikes, potentially adding headwinds for Bitcoin and other risk assets.

Despite near-term challenges, historical trends and key metrics suggest Bitcoin may be entering a phase of consolidation that offers an attractive entry point for long-term investors. As the market digests macro pressures, data points to the potential for a bullish rebound in the weeks ahead.