SOPR is on-chain data that best represents the psychology of market participants.
First, looking at the 2018 bear market, when Bitcoin fell significantly, many market participants sold at great loss, and that point was the bottom.
And looking at the 2022 bear market, market participants initially held Bitcoin at a loss, but when the FTX exchange went bankrupt and the future of the crypto market became unclear, they showed a large movement to sell at a loss.
Sure enough, Bitcoin bottomed out after that, and its price more than doubled in a year.
There will be many corrections and declines in the current market until it reaches the peak of the bull market, but from a psychological perspective, there still seems to be enough time left until the latter half of the bull market.
In the end, the mid- to long-term split purchase/sell method is likely to bring stable and high profits.
Written by Dan Lim
