Bitcoin Short-Term Holder SOPR Rebounds After 11 Months, Signaling Cycle Shift

Bitcoin’s spent output profit ratio, or SOPR, for short-term holders has turned higher for the first time in 11 months, in a sign the market cycle may be shifting, according to an analysis.

Crypto Dan, a contributor to CryptoQuant, wrote on Sept. 3 that the short-term holder SOPR, which had been suppressed for the past 11 months, had finally rebounded. He described it as a signal of a cycle turn.

SOPR measures whether investors, on average, are selling Bitcoin at a profit or a loss. A higher reading typically indicates that more investors are taking profits.

The market had shown one clear signal over the past 11 months: sellers were offloading Bitcoin at a loss or near break-even, Crypto Dan wrote. After most investors seeking to leave the market had exited, Bitcoin fell to $58,000 in July, about half of its all-time high, he added.

He said the market’s main drivers are finally starting to move. A strong move is emerging that seeks to shift the market cycle from bearish to bullish. Selling tied to profit-taking has appeared whenever prices rise, but the market is absorbing that supply, he wrote.