The ASOPR (Adjusted Spent Output Profit Ratio) indicator serves as a valuable tool for interpreting market. This indicator is depicted using a 200-day moving average, enabling investors to gauge the level of profit realized in the market.
Anticipating Market Peaks
According to @Woo_Mu, when the ASOPR indicator surpasses 1, it typically coincides market uptrends, signifying a greater likelihood of sustained price increases. However, historical indicates that when this indicator nears 1.08, it suggests an impending downturnRead more: pic.twitter.com/YHswbUyJaY
— Crypto.com (@cryptoquant_com)
June 21, 2024
ASOPR 1 Indicates Investor Profit
It is worth noting that whenever the ASOPR rises 1, it predominantly occurs during an upward-trending market. Consequently, Bitcoin prices expected to continue rising in such scenarios. Conversely, past data reveals that whenever the ASR approaches approximately 1.08,
Bitcoin undergoes a decline.
In essence: reading above 1 on theOPR signifies investors selling Bitcoin at a profit and generating demand which positively impacts prices. However, if the reading reaches 108 or close to it,
it implies numerous investors are cashing out—a potential sign declining shares.
Utilizing ASORP for Informed Bitcoin Investment Decisions
Histor patterns indicate that when the ASORP attains these specific values,
the market tends follow similar trajectories.
Given current market conditions,
there’s potential for price correction should the ASORP trend toward or beyond 1.08.
By monitoring this indicator,
invest can forecast upper-market boundaries and determine optimal times for buying or selling Bitcoin.
Furthermore,
this approach can help mitigate losses during corrections and optimize profits during upward trends.
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