The price of Bitcoin (BTC) fell for the third time in a week on February 28 to a key support level of $44,000 to $45,000.

BTC/USD 1-hour candlestick chart (Bitstamp). Source : View on trade

The BTC/USD pair briefly fell below $44,000 on the Bitstamp before recovering some losses and rising above $45,000 at the time of writing.

Full residual for the SOPR, subsidy rate

Some analysts attribute the recent price drop to increased mine sales.

He’s a war whale, and you know who has the real power.

Institutional investors in the U.S.
– Basic premium coins = BUY
– Basic premium coins = BUY

CTB Whales
– CTB Reserve = BUY
– TXs Stabilised Import = BUY

Miners
– Miners flows = SELL
– Miners flows in stock market = SELL pic.twitter.com/fhVBp8qocm

– Ki Young Ju 주기영 (@ki_young_ju) February 28, 2021

Fortunately, a third test of this important support level could provide a positive for the bulls. Glassnode’s data analyst discovered that the Bitcoin Daily Spend Efficiency Ratio (SOPR) had been completely reset.

The SOPR essentially indicates whether the results spent are profitable or unprofitable at the time of the transaction. For the first time since September 2020, this key indicator has turned negative. In other words, investors are now passing BTC with small losses on average, indicating a decline in profit-taking, according to Glassnode.

In total, we saw a net realized loss of $243 million yesterday, the analysts added.

This is the lowest daily value since April 2020.Bitcoin funding rate Source : Bybt.com.

Meanwhile, famed trader Philip Swift, co-founder of the Decentrader trading complex and creator of the Golden Number multiplication method, also pointed the finger at the collapse of the SOPR.

He sees this as a potentially bullish reversal in the price of the BTC, coupled with the reset of derivative funding rates last week, as such events have previously coincided with the start of new upward trends.

The SOPR has now reset (in green on the chart), meaning that sold portfolios are now being sold at a loss, he explained, adding :

It is a strong buy signal in a bull market. This situation, as well as the loading of derivative financial instruments, is favorable.BTC price at SOPR. Source : DecenTrader/Twitter @PositiveCrypto

The last time SOPR went green was five months ago, when Bitcoin was negotiating around $10,000. At that time, this was a major obstacle for BTC to start a new bull market. Since then, the price has more than quintupled to a new all-time high of about $58,000.

However, many traders remain cautious as the market enters March, which is historically a bearish month for cryptocurrents and markets in general.

I think March may be slow due to a lack of confidence in traditional markets, but overall I am optimistic about Bitcoin and expect much more in the next three months, Swift said in a private comment.

44K$-45K$ remains the most important level to observe

Meanwhile, bitcoin traders are keeping a close eye on the $44,000 to $45,000 mark. Trader Willie Wu, for example, says the $45,000 level is a very strong support and expects any drop below this level to be aggressively bought back when it occurs.

Distribution of realized UTXO awards. This is a chained and more accurate version of the volume profile. The maximum values represent the price at which most coins changed hands.

The $45,000 is a very strong support.

Each drop (if you’re lucky) of $39,000 is an easy-to-use BTFD.

Data : @glassnode pic.twitter.com/Z4xbEr0jTv

– Willie Wu (@woonomic) 27. February 2021

In addition, researchers from the channel analysis company Santiment believe that the entire cryptocurrency market is currently dependent on keeping Bitcoin above this key level.

It’s been a red weekend so far, with most eyes on Bitcoin rallying to the Altcoins that have made the climb, they said, adding :

Keep an eye on BTC’s support level of $44,000 as an indicator to monitor all cryptocurrences. This also applies to BTC’s activity in the chain.

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