Bitcoin Hovers Near $95K as Indicators Point to Accumulation Opportunity Amid Market Volatility

Bitcoin (BTC) edged close to $95,000 during European trading hours on Friday, recovering slightly from a Thursday slump that pushed prices near $90,000—a steep 10% drop from its weekly peak above $120,000.

Despite the recent pullback, on-chain metrics suggest that the current price levels may represent an attractive accumulation zone for investors looking to capitalize on a potential market rebound.

Key Metrics Signal Capitulation Phase

Bitcoin’s Spent Output Profit Ratio (SOPR), which measures whether coins are being sold at a profit or loss, has dipped to 0.987, according to Glassnode data. This indicates that short-term holders—investors who have owned BTC for fewer than 155 days—are exiting their positions at a loss. Historically, such behavior has often marked the end of local downtrends and the onset of price recoveries.

Other metrics, including the Market Value to Realized Value (MVRV) ratio and the Puell Multiple, also point to Bitcoin remaining in a bullish market cycle, despite the recent correction. CryptoQuant analyst Mac_D observed that the ongoing sell-off has created an environment favorable for long-term accumulation.

“As short-term traders face mounting losses, the market presents an opportunity for patient investors to accumulate undervalued BTC,” Mac_D noted. “The current price dip may be a temporary setback rather than a signal of a prolonged downtrend.”

SOPR and MVRV as Leading Indicators

The SOPR metric highlights sentiment among short-term market participants, with a value below 1 indicating capitulation and potential market bottoms. Similarly, the MVRV ratio—calculated by dividing Bitcoin’s market cap by its realized cap—helps gauge whether BTC is undervalued or overvalued relative to historical norms.

Periods where MVRV signals undervaluation have frequently coincided with strong buying opportunities, as demonstrated in previous market cycles.

Macro Pressures Add to Volatility

Thursday’s price decline was driven by robust U.S. economic data, including a strong Institute for Supply Management (ISM) services report. The report highlighted rising prices paid by service providers, fueling concerns of potential Federal Reserve rate hikes.

Traders are now focused on Friday’s U.S. non-farm payrolls (NFP) data for additional macroeconomic cues. A strong jobs report could reinforce expectations of tighter monetary policy, pressuring risk assets like Bitcoin in the short term.

A Potential Turning Point?

Despite the headwinds, the current market environment shows signs of a classic consolidation phase. As short-term holders capitulate, long-term investors appear to be preparing for a possible rebound. While near-term volatility remains likely, historical patterns suggest that Bitcoin may be approaching a point of renewed upward momentum.

For investors eyeing entry points, the current price zone around $95,000 could offer a strategic opportunity to position for the next leg of the ongoing bullish cycle.