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January 25, 2022
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SOPR Shows Bitcoin Holders Continue To Sell At A Loss, Similar To May-June 2021

The on-chain indicator SOPR means that Bitcoin holders have continued to promote at a loss for some time now. This habits is just like what was seen throughout the May-June 2021 mini-bear interval.

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

As identified by an analyst in a CryptoQuant post, the BTC SOPR reveals that holders are at present promoting at a loss.

The “Spent Output Profit Ratio” (or SOPR in brief) is an indicator that tells us whether or not coins moved on a given day had been offered at a revenue or a loss.

The metric measures so by taking a look at every coin on the chain and checking what the price the coin was final moved at. After that, the indicator calculates the ratio between this price and the present price.

When the worth of the indicator is above one, it signifies that holders are at present promoting, on a mean, at a revenue.

On the opposite hand, when the SOPR has values lower than one, it implies traders are shifting their Bitcoin at a loss total.

Finally, there’s the case when the worth of the indicator is precisely equal to 1. During such a interval, the market is breaking even on BTC gross sales.

Related Reading | Is The Bitcoin Hashrate Recovering From Kazakhstan’s Crisis? Fear Abides

Now, here’s a chart that reveals the pattern within the worth of the Bitcoin SOPR over the previous yr:

Bitcoin SOPR

Looks like the worth of the indicator has stayed under one just lately | Source: CryptoQuant

As you may see within the above graph, the Bitcoin SOPR at present has a worth lower than one, which suggests holders are promoting at a loss.

Related Reading | Bitcoin Open Interest Continues To Rise, Short Squeeze Incoming?

Such a pattern has been there for a month now. A related scenario was there after the May 2021 crash the place the indicator stayed under one for a protracted time period.

It’s potential that the present pattern of low SOPR values will proceed for some time, identical to again then. The interval round May-June was marked by a mini-bear market, and so if the pattern does repeat, an analogous bear surroundings may observe within the close to future.

BTC Price

Yesterday, Bitcoin’s price briefly declined under the $40k mark, however since then has jumped again up. At the time of writing, the price of the coin floats round $41.7k, down 10% within the final seven days. Over the previous month, the crypto has misplaced 13% in worth.

The under chart reveals the pattern within the price of BTC during the last 5 days.

Bitcoin Price Chart

BTC's price has continued to maneuver sideways above $40k in the previous few days | Source: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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