The on-chain indicator SOPR suggests that Bitcoin holders have continued to sell at a loss for a while now. This behavior is similar to what was seen during the May-June 2021 mini-bear period.

Bitcoin Investors Have Continued To Dump At A Loss For A Month Now

As pointed out by an analyst in a CryptoQuant post, the BTC SOPR shows that holders are currently selling at a loss.

The “Spent Output Profit Ratio” (or SOPR in short) is an indicator that tells us whether coins moved on a given day were sold at a profit or a loss.

The metric measures so by looking at each coin on the chain and checking what the price the coin was last moved at. After that, the indicator calculates the ratio between this price and the current price.

When the value of the indicator is above one, it means that holders are currently selling, on an average, at a profit.

On the other hand, when the SOPR has values less than one, it implies investors are moving their Bitcoin at a loss overall.

Finally, there is the case when the value of the indicator is exactly equal to one. During such a period, the market is breaking even on BTC sales.

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Now, here is a chart that shows the trend in the value of the Bitcoin SOPR over the past year:

Looks like the value of the indicator has stayed below one recently | Source: CryptoQuant

As you can see in the above graph, the Bitcoin SOPR currently has a value less than one, which means holders are selling at a loss.

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Such a trend has been there for a month now. A similar situation was there after the May 2021 crash where the indicator stayed below one for a prolonged period of time.

It’s possible that the current trend of low SOPR values will continue for a while, just like back then. The period around May-June was marked by a mini-bear market, and so if the trend does repeat, a similar bear environment could follow in the near future.

BTC Price

Yesterday, Bitcoin’s price briefly declined below the $40k mark, but since then has jumped back up. At the time of writing, the price of the coin floats around $41.7k, down 10% in the last seven days. Over the past month, the crypto has lost 13% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC's price has continued to move sideways above $40k in the last few days | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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According to on-chain data, Bitcoin SOPR is still assuming flat values, indicating that investors are likely to not be willing to sell at this level.

Bitcoin SOPR Stagnates, Despite Huge Rise In The Crypto’s Price

As per a post from CryptoQuant, while Bitcoin’s price shows a sharp improvement as the coin reaches $55k for the first time since May, the SOPR is still showing a flattened line.

The Spent Output Profit Ratio, or SOPR in short, is a BTC indicator that shows the profit ratio of the whole market. It does so by looking at the chain transactions and comparing the price at which a purchase transaction happened and the price at which those same coins were sold.

When the value of this indicator is greater than 1, it means the coins moved in the specified timescale are on an average selling at a profit.

Contrary to that, SOPR values below 1 would suggest BTC transacted in the period sold at a loss on average. While a value of exactly one would mean sellers are just breaking even.

Related Reading | Bitcoin Inflows Shows Institutional Investors Are Back On The Bull Train

Now, here is a chart showing the trend in this indicator for BTC:

Bitcoin's SOPR seems to have flattened recently | Source: CryptoQuant

When the indicator shows a rising value, it means investors have started realizing their profits by selling off their coins.

A decreasing value, on the other hand, would mean holders are dumping their coins at a loss, probably because they have no confidence left in the crypto.

Related Reading | Whales Moving Coins Hints At Bitcoin Maturity As Macro Asset

As the above graph shows, SOPR values have neither been decreasing nor increasing lately. The curve for the indicator is just a flat line right now.

This is despite Bitcoin’s recent big move up, where usually some investors would start harvesting their profits, but that doesn’t seem to be the case this time.

Such a trend may be because the majority of holders think the price of the coin will appreciate even further so they aren’t moving around their crypto just yet.

This unwillingness of the investors to sell their Bitcoin can end up proving to be quite bullish for the cryptocurrency. Though, when holders do start taking their profits, that’s likely when a correction could hit.

BTC Price

At the time of writing, Bitcoin’s price floats around $53.7k, up 25% in the last seven days. Over the past thirty days, the coin has surged up 12% in value.

The below chart highlights the trend in BTC’s price over the last five days.

Bitcoin's big rise took it to as high as $55.5k, though since then the price has moved rather sideways | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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