Joao Wedson, a leading cryptocurrency expert and CEO of the on-chain analytics firm Alphractal, recently shared his insights on Bitcoin’s near-term price movements and the latest blockchain data trends.
Wedson highlighted that Bitcoin’s price is currently confined within two pivotal thresholds. He pinpointed $90,500 as a key level where a significant wave of short (bearish) position liquidations might occur, while $84,500 serves as an important zone for liquidating long (bullish) positions.
The analyst explained that Bitcoin’s price is oscillating between these liquidity zones and predicted that once one side experiences liquidation, it could trigger a rapid price shift. He emphasized that volatility remains elevated in this phase due to ongoing liquidity hunting activities in the market.
Meanwhile, Alphractal’s on-chain data paints a more cautious scenario. Their analysis reveals diminishing profitability from recent transactions on the blockchain. Specifically, the SOPR Trend Signal—a metric indicating whether Bitcoins are being sold at gains or losses—has been declining. This suggests many transfers are happening with minimal profits or even at losses.
The firm noted that such declines in SOPR historically align with bearish market conditions. They further stated that confirming an actual bottom requires observing renewed positive signals (“green lights”) from this indicator again. Current trends imply this recovery may take several months to materialize.
Disclaimer: This content does not constitute financial advice.