Despite retreating from $124,000, Bitcoin shows strong support | Credit: Derek Fenech
Share
Key Takeaways
Bitcoin has retreated from its all-time high to $112,975, but on-chain data suggests a bottoming phase.
SOPR sits at 1.0, whales have accumulated 16,000 BTC, and strong supply clusters indicate resilience.
A triple-bottom pattern and CMF indicate that BTC price could bounce back and target $161,383.
Eight days after reaching an all-time high of $124,457, Bitcoin (BTC) has since retreated to $112,975.
The pullback feels unsettling for some traders, with a few analysts suggesting that BTC may have already topped out this cycle. However, on-chain analysis tells a different story.
Several key metrics indicate that BTC is bottoming out, setting the stage for a potential reversal.
If these signals hold, Bitcoin’s price could soon see a notable rebound, challenging the idea that the bull run is over.
Bitcoin SOPR Signals Bottom
One key metric pointing to Bitcoin’s bottom is the Spent Output Profit Ratio (SOPR).
The SOPR tracks whether moved coins are being sold at a profit or a loss. An SOPR reading above 1 means most investors are selling at a profit, a condition that aligns with local tops.
On the other hand, readings below 1 suggest coins are being sold at a loss, typically signaling an accumulation phase.
Get These Top Crypto Casino Offers Now!
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
At press time, Bitcoin’s SOPR sits at 1, showing that selling pressure is balanced between profits and losses.
Historically, this level marks a turning point where the market transitions from correction to rebound, suggesting that Bitcoin’s price may be close to reversing to the upside.
BTC Spent Output Profit Ratio | Credit: CryptoQuant
Rebound Base Strengthens
Given this position, BTC is unlikely to drop below $100,000 as the metric reduces the probability of a deeper correction.
Bitcoin whales also appear to share this bullish outlook. According to CryptoQuant analyst caueconomy, whales have added 16,000 BTC to their holdings, signaling growing conviction that a rally is close.
“In the last seven days, wallets of major Bitcoin network players have accumulated more than 16,000 BTC. This pattern reveals something similar to what we saw in the first correction in early August, with major players accumulating Bitcoin as Bitcoin’s price fell and smaller investors capitulated at a loss. If this pattern repeats, we should soon see a local bottom and a short-term reversal,” The analyst pointed out.
Should this accumulation continue, Bitcoin’s price might experience a bounce above $120,000. Furthermore, data from Glassnode also supports this.
At present, a dense cluster of supply sits between $113,000 and $120,000, accumulated since early July by investors who have held for less than three months.
This group of short-term holders is especially important — if they capitulate, BTC could face additional selling pressure. But since they are HODLing, the zone could be a strong base for a Bitcoin price rebound.
BTC Price Prediction: Bullish Setup Builds
On the daily chart, Bitcoin’s price appears to have formed a triple-bottom pattern, a setup similar to the one that propelled it past $124,000 earlier this cycle. Adding to the bullish case, the Chaikin Money Flow (CMF) is breaking out of its downtrend.
If the CMF successfully flips positive, BTC could rebound toward $124,648. In a highly bullish scenario, the rally could extend to a new all-time high, with Fibonacci projections pointing at $161,383.
On the flip side, if the CMF fails to rise above the zero line, this bullish outlook could collapse.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
