This graph shows variations in the SOPR Ratio (Spent Output Profit Ratio). Specifically, the 'LTH-SOPR/STH-SOPR' shown here compares the SOPR value of long-term holders to short-term holders, using a 7-day Simple Moving Average. When this ratio increases, it indicates that long-term holders are realizing greater profits compared to short-term holders, a potentially useful metric in identifying market tops.

Over the years, this ratio has generally decreased, but we see certain patterns where the increase in the ratio precedes the increase in Bitcoin prices, reaching a peak before adjusting. Such patterns shed light on the likelihood of long-term investors capitalizing on rising prices to realize profits, shedding light on the potential impact of such profit-making on market conditions.

Interpreting the current pattern, a high SOPR Ratio could signal that the market's upward momentum may have been partially diluted by long-term investors, indicating the need to be wary of potential price corrections or increased volatility in the future.