That’s 10% below the weekly high of $120,000.

Economic data and general profit taking may have weakened the early Bitcoin (BTC) rally, but data tracking investor behavior suggests that buying at current price levels could be advantageous for those looking to enter the BTC markets.

On-chain data shows Bitcoin’s Spent Output Profit Ratio (SOPR) rose to 0.987 as of Friday, indicating investors who have been holding Bitcoin for less than six months are selling at a loss.

Historically, this scenario has often followed price recoveries and signaled a potential buying opportunity.

Along with other closely watched cycle indicators, Market Value to Realized Value (MVRV) and Puell Multiple, the short-term investor ratio of 60% indicates that the market has not peaked and this week’s correction is not the end of the bull cycle. CryptoQuant contributing analyst Mac_D stated this.

“Short-term investors typically present better accumulation opportunities as they take more pain,” MAC_D said in a post Thursday.

“If there is a further decline from the current price, smart investors will likely accumulate coins sold cheaply by short-term investors. So selling coins at this point could be a pretty bad decision.”

SOPR measures the profit or loss of Bitcoin outputs spent by comparing the price at which the coins last moved with the price at which they were spent.

Short-term SOPR focuses on coins moving within a short time frame (less than 155 days) and can indicate market sentiment, a value less than 1 can indicate market bottoms or capitulation and signal a potential buying time.

MVRV compares Bitcoin’s total market cap (market cap) to its “realized market cap,” which values ​​each Bitcoin at the price it last moved at. It is used to measure whether Bitcoin is overbought or oversold and helps predict potential market tops or bottoms.

While BTC approached $95,000 levels in the European time zone on Friday morning, it fell to $90,000 levels with the decline in the US time zone at the end of the previous day. That’s 10% below the weekly high of $120,000.

New economic data pushed U.S. Treasury yields to a peak on Thursday, sending stocks falling and risky assets like Bitcoin falling in value.

The latest Institute for Supply Management (ISM) report for US service providers came in stronger than expectations, with the prices-paid measure reaching the highest level since the beginning of 2023.

Investors are eyeing US nonfarm payrolls data (NFP) due on Friday, a development being watched ahead of further positioning. Strong NFP data indicates a solid economy and indicates potential interest rate increases, which is generally a negative for risky assets like Bitcoin.