Bitcoin SOPR Still Some Distance Above The “One” Level
As pointed out by an analyst in a CryptoQuant , the BTC SOPR hints there may be some ways to go still before a bottom forms.The “spent output profit ratio” (or SOPR in brief) is an indicator that tells us whether investors are selling at a profit or a loss right now.
On the other hand, the last price being more than the current one would imply the investor realized a loss on this coin.
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Looks like the indicator's value is above 1 right now | Source:In the above graph, the quant has marked the important points of trend. It seems like bottoms have historically formed whenever the Bitcoin SOPR has dipped below the value = 1 mark. The significance of this “one” level is that investors are just breaking even at this point. The value drops any further and they are selling at a loss.
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After capitulation, there aren’t many sellers left in the market normally, hence why a bottom forms during such periods. Now, looking at the current trend, it seems like the value of the Bitcoin SOPR is around 1.31 right now. This is still a bit above the 1 level, which could suggest there may be more downside in the store for the crypto before a new bottom formation takes place. However, it’s also possible the price may see a temporary rebound here, as it already did once earlier in the year around a similar SOPR value.BTC Price
At the time of writing, Bitcoin’s price floats around $40.7k, up 1% in the last seven days. Over the past month, the crypto has lost 3% in value.
The below chart shows the trend in the price of the coin over the last five days.BTC's price looks to have surged up over the past twenty-four hours | Source:
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com