Bitcoin’s price in the market has been taking continuous hits over the week. While Bitcoin started the week by facing strong resistance close to $11k, a sell-off soon pushed its value down by 6.32%, with the digital asset once again valued at $10.2k. While BTC tried to bounce back from this drop, on 23 September, the price collapsed again, after touching $10.5k on the charts.
Buy the dip?
With institutional interest flowing into BTC on a huge scale, institutions are certainly buying all the dips coming their way and others should too. The recovery of BTC’s on-chain data is a tell-tale sign of the upcoming trend. For instance, the Spent Output Profit Ratio [SOPR] indicator by Glassnode, a provided of on-chain insights, was the latest to highlight such buying opportunities in the BTC market.
The SOPR dipped under 1 on 22 September, a clear indicator of this being an opportunity to buy the dip. Interestingly, the SOPR had, however, managed to bounce back almost immediately.
Source: Glassnode
An SOPR value under 1 suggests that stakeholders are selling at a loss, or simply put, the selling price was lower than the price at which it was bought – a great opportunity for buyers to buy the digital asset at a lower price.
It should be noted, however, that this was not the first time a buying opportunity had made its way into the BTC market. Last week, the SOPR indicator fell under one for the first time since April. However, like this time, the metric was quick to bounce back and did not confirm a bearish trend. According to market observers, these brief dips are signs of an early bullish market, one that might be confirmed after we see the huge BTC Options expiry this week.
88,000 BTC to expire on Friday
Nearly 88,000 BTC Options are set to expire on Friday and according to Skew, the Open Interest has briefly reclaimed its peak.
Source: Skew
Given the sizeable volume of contracts, the expiration may pull down the price of BTC, at least briefly, a development that could again, give birth to an opportunity for the market’s buyers. It’s time to wait and watch this metric and continue to buy these dips before the market sets off on a full-blown rally.
