Over the past 24 hours, Bitcoin’s price has decreased by 1.3%, currently trading around $113,600. This dip has raised concerns among some investors, but short-term investors are making aggressive purchases, hinting at a potential recovery.
Increase in Short-Term Investor Purchases
In recent days, there has been a noticeable increase in the amount of Bitcoin held by short-term investors who purchased Bitcoin over the last 155 days. This figure has risen from 2,460,514 BTC a week ago to 2,503,798 BTC. This uptrend occurred during a period when the price fell from $123,000 to $112,000, indicating increased activity among these investors.
Continued Purchasing Despite Losses
Short-term investors are continuing to buy Bitcoin despite incurring losses during recent price declines. The Short-Term Holder Spent Output Profit Ratio (SOPR) fell to its lowest value in a month on August 18, suggesting that these investors were selling at a loss. A SOPR value below 1 indicates that this group is accepting losses during their purchases.
Price Recovery and Support Level
Despite current pressures on Bitcoin’s price, signs of a potential recovery are emerging. The price has slightly increased to $113,600. The most robust support level is identified as $111,900, with holding this level crucial for any potential rebound.
The Bitcoin market continues to show activity among short-term investors, and their purchases during price declines may indicate a positive shift in market direction. However, a drop below the $111,900 support level could invalidate positive expectations.
