The Spent Output Profit Ratio (SOPR) indicator for Bitcoin, with an average of 80, has not yet reached levels seen at the market bottom in 2015 and 2018. SOPR is a metric that calculates the proportion of outputs spent at a profit within a certain time frame. It indicates whether the coins being moved are being sold at a profit or not. However, there is still a possibility of testing the lower region, as aggressive selling pressure acted at the current resistance level of US$30,000 to US$31,000. Bitcoin is going through a possible distribution scenario, as the SOPR indicator remained sideways and did not continue to rise, favoring a price correction. This means that short-term holders may be selling their coins at a time when the market is vulnerable to a price drop. However, it is important to remember that no indicator can predict the future with 100% accuracy and that the cryptocurrency market is highly volatile and unpredictable. Therefore, it is essential for investors and traders to adopt a solid risk management strategy to minimize potential losses. CryptoQuant has the best On-chain indicators to help you make informed decisions.
Written by joaowedson
