The short-term SOPR (Spent Output Profit Ratio) has found support above 1, indicating a bullish sentiment in the market. A SOPR value above 1 means that coins moved on that day are, on average, selling at a profit, while a value below 1 indicates that they are selling at a loss. The recent retest of the 1 level, which represents the break-even point for short-term holders, is particularly significant. This support suggests that holders are unwilling to sell at a loss, reducing selling pressure. As the SOPR consistently remains above 1, it signals that profit-taking is being absorbed. With the market not overly heated, this dynamic has the potential to push Bitcoin's price upwards.
Written by Phi Deltalytics