Bitcoin Short-Term Holder SOPR Continues to Retest Break-Even Level
According to on-chain data, the Bitcoin indicator known as the Spent Output Profit Ratio (SOPR) has been retesting the bear-bull transition point but has not yet achieved a breakthrough. This metric determines whether investors in the Bitcoin market are currently selling at a profit or a loss. When the SOPR value is above 1, it indicates that the market is realizing more profits than losses through selling. Conversely, values below the threshold suggest that loss-taking dominates the sector.
Trend in Bitcoin SOPR
The Adjusted SOPR (ASOPR) has been hovering around 1 recently. The ASOPR filters out coins sold within one hour of their previous sales. The graph shows that the Bitcoin ASOPR has consistently remained slightly inside the loss region while retesting the break-even mark from below. This suggests that the average holder is currently selling at a slight loss. Despite numerous attempts, the indicator has not managed to enter into profit territory.
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Short-Term Holder SOPR
The Short-Term Holder SOPR focuses on investors who have held their coins for less than 155 days. When this indicator enters the profit zone, there is usually an uptrend in price. However, recently, the STH SOPR has also been in the red zone, indicating that these holders are experiencing more losses than other investors in the sector.
Retest of Break-Even Mark
The SOPR indicator is currently retesting the break-even mark once again. If a breakthrough occurs, it could signal a bullish trend similar to previous instances over the past few months.
BTC Price
In recent days, Bitcoin’s price has surged and surpassed the $27,000 level.
Hot Take: Bitcoin SOPR Indicators Suggest Bearish Sentiment
The Bitcoin SOPR indicators, including the overall market SOPR and the short-term holder SOPR, currently indicate a bearish sentiment. Both indicators have been in the red zone, suggesting that investors are selling at a loss. The retesting of the break-even mark by these indicators further reinforces this sentiment. While a breakthrough could potentially lead to a bullish trend, it is important to closely monitor the SOPR indicators for any significant changes in market sentiment.
