Cryptocurrency analysis firm Glassnode released a chart showing that HODLing conviction remained high even during the last dip.
Glassnode published a chart showing the Bitcoin 60-day Spent Output Profit Ratio (SOPR). The chart shows that despite the Bitcoin dip in February, the SOPR did not fall below 1. This indicates that those who bought Bitcoin in 2021 held onto it despite the correction.
SOPR and its Importance
Glassnode calculates the SOPR by dividing the price sold by the price paid. The company has a detailed article on what can be gleaned from the SOPR chart. Briefly, though, if the SOPR is above 1 (profits are made), selling at a loss is rejected. In a bear market, the sell-off continues until the value drops below 1, as more losses are registered than gains.
In February, the SOPR did not dip below 1. Glassnode can assume, then, that enough of the most recent Bitcoin purchasers maintained their holdings to not drive the SOPR negative.
Sentiment comes out in other ways, as business intelligence company MicroStrategy showed on Mar. 5, when it bought 205 BTC. The purchase, worth $10 million, raises the company’s Bitcoin holding to 91,0634.
MicroStrategy CEO Michael Saylor tweeted about the purchase, and gave some interesting statistics about the company’s holding at the same time. For one thing, the average purchase price is now around $24,119. For comparison, MicroStrategy’s first Bitcoin purchases were in August 2020, when Bitcoin was selling in the $11,000 range.
As BeInCrypto reported previously, MicroStrategy has a history of purchasing BTC on the dip. The Mar. 5 purchase follows this pattern. In fact, this is the company’s fourth Bitcoin purchase in 2021.
The MicroStrategy purchase also signals that Bitcoin is in a dip. BeInCrypto pointed out that the cryptocurrency has a major resistance area at $52,500. This area has been tested in March, but not yet broken. The market is looking for signals to push the coin to the next level.
BeInCrypto also wrote this week that interest in BTC futures is also dwindling. In November and December, 2020, the drop in perpetual futures indicated an incoming round of speculative interest. This in turn drove the price up.
Corporate interest is high and recent purchasers are holding. What will move the Bitcoin price above $52,500 is the big question at the moment.