Bitcoin Short-Term Holder SOPR Starts Turning Green Again
As explained by an analyst in a CryptoQuant , the current BTC SOPR pattern may look similar to that around the bottom formation back in July of last year.The “Spent Output Profit Ratio” (or SOPR in short) is an on-chain indicator that tells us whether investors are currently selling at a profit or at a loss.
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Looks like the LTH SOPR had a large spike recently | Source:As you can see above, there are separate graphs for two versions of the Bitcoin SOPR indicator. They are the short-term holder (STH) SOPR and the long-term holder (LTH) SOPR.
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The quant has pointed out that this trend of the two metrics seems to be similar to what happened during the May-July 2021 bear period. The bottom formation took place then, so if there is any pattern here, the bottom may be in now as well.However, the analyst also notes that the reason behind the large LTH SOPR spike this time looks to be because of the Bitfinex hack, where a large number of dormant coins were moved. On the other hand, the last time it happened was because of a bear trap. Whether this is a false signal this time because of it remains to be seen.
BTC Price
At the time of writing, Bitcoin’s price floats around $42.7k, up 15% in the last seven days.
BTC's price rallies up | Source:
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com