Bitcoin (BTC) May See a Strong Rise in the Coming Months, Quant Explains

A quant has explained how Bitcoin may be expected to see a strong rise in the coming months based on a golden cross that has occurred in this indicator.

A quant has observed that the Bitcoin Spent Output Profit Ratio (SOPR) has recently experienced a golden cross, which could be bullish for the asset.

The SOPR is an indicator that measures the ratio of the net profit or loss realized by investors selling their BTC coins to the total sell volume. It is calculated by going through each coin's transaction history to determine the price at which it was last moved. If this price is lower than the current spot price for any token, its sale contributes to profit realization.

In a recent CryptoQuant Quicktake analysis, an analyst noted that the 30-day moving average (MA) of the Bitcoin SOPR crossed below the 365-day earlier this year. However, it has now reversed direction and broken above this level again.

As you can see in the chart below, this indicator has crossed above the 365-day MA several times before, and each time it has led to bullish price action for the asset.

“After the golden cross appears, the market usually starts a strong rise within 2 months at the latest,” said the analyst.

This is the second time this cycle that the 30-day SOPR MA has crossed above the 365-day, and the last time this happened, the asset went on to reach its peak price for the cycle. It is possible that this pattern will repeat itself again.

However, it is important to note that past performance does not guarantee future results, and this indicator may not be bullish for BTC this time around.