This metric suggests Bitcoin is not moving above $20k just yet

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Bitcoin completed a massive milestone over the past 24-hours. For the first time in its history, the asset traded above $19,000 for more than a day. While its consolidation has been absorbed well in the past few days, the optimistic trader might want to hold their horses since Bitcoin at $20K is on shaky ground right now.

Source: BTC/USD on Trading View

While the community may go berserk over the above comment, BTC may find it hard to hold on to the  $20k level over the next few days because its profit-takers are yet to complete their exhaustion. Let me explain.

Identifying Bitcoin buy signal with SOPR

According to Willy Woo – Bitcoin analyst, and proponent, the price has sustained a higher range of value as profit-takers are currently incurring capital gains and their initiative is far from over.

Source: Twitter

As observed in the above chart, Bitcoin eSOPR or entity adjusted Spent Output Ratio, is currently awaiting a re-set which would highlight the exhaustion of profit-takers. Right now, the current price is possibly a bull-trap as retail continues to eat up available selling pressure.

Since SOPR is at its all-time high right now, a new rally above $20,000 without a decline in the indicator is a little questionable. Woo stated,

“Once SOPR starts declining, profit taking begets profit taking….

Source

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