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Bitcoin’s SOPR Signals Market Resilience, Whales Buy Amid Short-Term Panic
The recent dip in the Short-Term Holder Spent Output Profit Ratio (SOPR) has sparked optimism among investors, as it indicates a strong signal of market resilience. According to CryptoQuant data, short-term speculators had been capping out at approximately $92,000 as of January 2025, highlighting a panic selling event often associated with local price bottoms.
As the SOPR trends from November 2022 to January 2025 closely mirrored Bitcoin’s price movements, it is evident that such dip below 1 has signaled widespread selling at a loss. This phenomenon had occurred earlier in early 2023, which led to a decline in Bitcoin’s value.
However, mid-2023 saw a remarkable turn of events as the SOPR surged above 1, indicating profitable trades and Bitcoin subsequently rebounded. The subsequent period from late 2023 to early 2024 witnessed an upward trajectory for Bitcoin, fueled by a continuous SOPR above 1.
The data showcases the critical relationship between market momentum and SOPR levels, which was highlighted by these cycles.
Source: cryptonewsland.com
