Bitcoin‘s price action has been a rollercoaster ride in 2024, rising by over 50% to reach around $64,350 on June 23. However, this period of market growth has witnessed upside exhaustion near the elusive $70,000 mark. Since March, bulls have failed to clearly break out above the said resistance level, resulting in 20-25% price retreats on different occassions. However, Bitcoin’s popular on-chain metric, dubbed the Adjusted Spent Output Profit Ratio (aSOPR), indicates that the cryptocurrency might be gearing up for a significant breakout in the coming weeks. Let’s discuss it in detail.Bitcoin’s aSOPR Metric Hints At New Record High FormationsFor the unversed: aSOPR measures the profit ratio of spent outputs on the Bitcoin network. That said, when the aSOPR reading goes above 1, it means that traders are selling their holdings at a profit. Conversely, a value below 1 suggests that coins are being sold at a loss.
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*Bitcoin price vs. aSOPR performance chart. Source: CryptoQuant*
For example, the Chair of the U.S. Federal Reserve, Jerome Powell, has indicated that the central bank may have reached the peak of its rate hike cycle, which some believe could be a catalyst for a Bitcoin rally in 2024 . Additionally, the upcoming Bitcoin halving event, which is scheduled for April 2024, could also impact Bitcoin's price action
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