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.
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….