Is Bitcoin down at $92k? These 3 BTC charts say the worst is over

Bitcoin (BTC) fell 11% between January 7 and 9, falling below $92,000 for the first time in nine days.

The decline resulted in the loss of more than $257.5 million of leveraged long positions over the same period and coincided with dividend hikes, strong economic data and the upcoming inauguration of US President Donald Trump.

Despite this short-term bearish momentum, three data points indicate that the drop to $92,000 could signal a low for BTC, providing a good entry point for investors.

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SOPR drops hints on the bottom of Bitcoin price

According to Onchain data, Bitcoin's Spent Price Earnings Ratio (SOPR) fell to 0.98 on January 10, indicating that short-term holders (STH) – investors who have held Bitcoin for less than 155 days – are selling at a loss.

Bitcoin's recent decline has been “driven by short-term holders realizing losses,” market intelligence firm CryptoQuant said in a Jan. 9 post on X.

“In the last 24 hours, 36.4k Bitcoins have been moved from short holders to exchanges, with the Issued Cost Profit Ratio (SOPR) dropping below 1.

SOPR is used to measure the profit or loss of Bitcoin products by comparing the value of the coins to their last value when they were re-issued.

Short-term SOPR focuses on coins that have moved in less than six months and can be used to indicate market sentiment. A value below 1 may indicate buying potential or market weakness, which may indicate a good time to buy.

This situation often precedes price recoveries, indicating a buying opportunity. In the year Following Bitcoin's fall to $49,577 on August 5, 2024, SOPR fell to 0.90, followed by a 31 percent price recovery three weeks later to $65,103.

More recently, BTC's 62% rally between November 5th and December 17th, 2024, to over $108,000, saw the SOPR ratio fall below 1 on November 4th.

As such, some investors interpret the price action that saw the drop to $92,000 as a buying opportunity, not as a new bear cycle, but as a weak handshake.

“At 92.8K

“Bitcoin's $92k range is going to be where we hit hard if we want to break out.”

The sleep flow configured by the BTC component lights up green.

Another factor used to determine whether the Bitcoin market is bearish is the ratio of BTC's current market capitalization to the annual dormancy rate (measured in US dollars), which is adjusted by the entity's dormancy flow.

Historically, an indicator drop below 250,000 (red circles) provides a “good historical buy zone” and often ends significant price recoveries early or price corrections.

The index fell from 260,278 on December 16 to a low of 210,000 on January 9.

Historically, reversals above 250,000 have coincided with the start of significant bull runs after the previous dip. One example is when Bitcoin went down in July 2021 and started a new bull run, when the indicator fell into the green zone. On November 10, Bitcoin continued to hit a record high of $69,000.

Related: Bitcoin speculators fear ‘good time to stock up' and sell for $92K

With the indicator once again sending a bullish signal, the price may recover from the recent low at $92,000 before moving higher.

Bitcoin's long-term supply spread has peaked

Additionally, the percentage of Bitcoin supply held by long-term holders (LTHs) has reached its lowest level since December 6, 2024. This means that the distribution of LTHs has occurred over the past month, possibly fueled by profits following Bitcoin's run for all. -Time high above $108,000.

Now, LTHs circulation has slowed, with the 30-day percent change in LTH supply indicating that the circulation has peaked and reached the peak of previous cycles, according to Glassnode.

The slowdown in LTH supply distribution suggests that the market may be transitioning from a distribution phase to inventory, which is historically consistent with market bottoms.

Explaining this phenomenon in a January 10 X post, Glassnode said:

“In previous cycles, prices continued to rise even after the LTH spread peaked. This indicates that a high in a distribution does not always coincide with a macro top.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.