BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

Bitcoin Could Dump Again and Here is Why

by Sham
April 15, 2024
in Crypto, Opinion
A A
Bitcoin Could Dump Again and Here is Why
2
SHARES
Share on TwitterShare on Reddit
  • Bitcoin funding rates remain highly elevated compared to historical averages, indicating potential for another price dump
  • Large retail profit-taking has been observed, which could signal a local top
  • Bitcoin’s Spent Output Profit Ratio (SOPR) for short-term holders reached extreme greed levels in March, before retreating to a more neutral position

Bitcoin‘s price may be due for another correction despite a strong recovery from its weekend dump to $61,000, according to analysts at CryptoQuant.

JUST IN: Analysts at CryptoQuant warn of a possible new correction for #Bitcoin

Due to 👇

– Elevated funding rates

– Substantial retail profit-taking

Do you agree?

— BlockNews.com (@blocknewsdotcom) April 15, 2024

Bitcoin Funding Rates Remain Elevated

Bitcoin funding rates are still highly elevated compared to historical averages, and large retail profit taking could indicate a local top.

The price is in a defined channel with around 20% expansion/retraction, an ideal scenario for large players to set up large positions, wrote GAAH.

The last time Bitcoin funding rates were in an equally significant bearish position was in late 2021, when Bitcoin’s price was just 25% of what it is today. Since then, the asset has experienced multiple brief corrections of roughly 20% though it hasn’t seen a funding premium like today.

Retail Investors Taking Profits

The asset’s rapid rise has incentivized many retail investors to start taking profits. The Spent Output Profit Ratio (SOPR) for short-term holders reached levels of extreme greed in March and has only now retreated towards a more neutral position.

Historically, when there are large retail profit-taking moves, it means a potential top is in the making, the analyst added. After the rapid fall in prices over the last two days, there has been a significant outflow of realizations by these holders.

How to Spot the Next Bottom

Lead Glassnode analyst James Check commented on the same metric on Sunday, claiming its latest break back below a 1.0 ratio is a healthy sign for bulls. He said short-term holders are disproportionately at a loss compared to long-term holders, and that the market must shake out its weak hands before moving higher.

SOPR is a metric that benefits contrarians, he advised. Watch the retest of 1.0, it needs to break above not find resistance.

Bitcoin’s crash over the weekend triggered $700 million in liquidations within 24 hours. Many suspect it was sparked by escalating geopolitical tensions between Iran and Israel.

Conclusion

Bitcoin’s price remains in a precarious position according to multiple on-chain metrics. While its weekend correction may mark the start of a deeper pullback, analysts advise watching key indicators like funding rates and SOPR for signs of the next bottom. Patience will be key in navigating the turbulent waters ahead.

Tags: BitcoinCryptoQuantSpent Output Profit Ratio
Tweet1ShareShare1

DON'T MISS THESE! HOT OFF THE PRESS

TRON Breaks Free: TRX Bulls Eye That $0.30–$0.42 Window
Crypto

TRON Breaks Free: TRX Bulls Eye That $0.30–$0.42 Window

June 17, 2025
Fartcoin Finds Its Groove in a Choppy Market — Is Another Pump on the Way?
Crypto

Fartcoin Finds Its Groove in a Choppy Market — Is Another Pump on the Way?

June 17, 2025
Hyperliquid’s Popularity Is Booming — But Most Traders Are Still Losing Money
Crypto

Hyperliquid’s Popularity Is Booming — But Most Traders Are Still Losing Money

June 17, 2025
Rate Cuts Could Fuel the Next Altcoin Boom — 3 Projects to Watch Closely
Crypto

Rate Cuts Could Fuel the Next Altcoin Boom — 3 Projects to Watch Closely

June 17, 2025
Litecoin’s Breakout Setup: Is the Bottom Finally In?
Crypto

Litecoin’s Breakout Setup: Is the Bottom Finally In?

June 17, 2025
BNB Climbs Past $600 and Builds Momentum — Could $960 Be Next?
Binance BNB

BNB Climbs Past $600 and Builds Momentum — Could $960 Be Next?

June 17, 2025
Load More

Related News

TRON Breaks Free: TRX Bulls Eye That $0.30–$0.42 Window

TRON Breaks Free: TRX Bulls Eye That $0.30–$0.42 Window

June 17, 2025
Fartcoin Finds Its Groove in a Choppy Market — Is Another Pump on the Way?

Fartcoin Finds Its Groove in a Choppy Market — Is Another Pump on the Way?

June 17, 2025
Hyperliquid’s Popularity Is Booming — But Most Traders Are Still Losing Money

Hyperliquid’s Popularity Is Booming — But Most Traders Are Still Losing Money

June 17, 2025
Rate Cuts Could Fuel the Next Altcoin Boom — 3 Projects to Watch Closely

Rate Cuts Could Fuel the Next Altcoin Boom — 3 Projects to Watch Closely

June 17, 2025
Litecoin’s Breakout Setup: Is the Bottom Finally In?

Litecoin’s Breakout Setup: Is the Bottom Finally In?

June 17, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.