According to on-chain data, current Bitcoin SOPR trend suggests the market may be nowhere near the price bottom. Bitcoin SOPR Still Some Distance Above The “One” Level As pointed out by an analyst in a CryptoQuant post, 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. The metric works by evaluating the history of each coin on the chain to see which price it was last moved at. If this price was less than the current price (that is, the selling price), then the coin sold at a profit. On the other hand, the last price being more than the current one would imply the investor realized a loss on this coin. Related Reading | On-Chain Data: Bitcoin Whales Buy The Dip As BTC Drops To $39k When SOPR has a value more than one, it means the overall market is making a profit at the moment. While ratio values below the threshold imply a realization of losses. Now, here is a chart that shows the trend in the Bitcoin SOPR over the past few years: Looks like the indicator's value is above 1 right now | Source: CryptoQuant 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”...
