According to on-chain data, Bitcoin SOPR is still holding the equivalent price, indicating that investors are probably not willing to sell at this level.
Bitcoin SOPR is stagnant despite a huge increase in crypto prices
According to a post from CryptoQuant, while the price of Bitcoin shows a sharp improvement since the currency reached $ 55k for the first time since May, SOPR is still showing a flat line.
Spent output profit ratio, or SOPR for short, is a BTC indicator that shows the ratio of profit to the whole market. It does this by looking at the chain transaction and comparing the price at which a purchase transaction took place and the price at which the same coin was sold.
When the value of this index is greater than 1, it means that coins moved over a period of time are sold at an average profit.
In contrast, SOPR values below 1 would recommend BTC to the average sales time at the time of transaction. Although exactly one value means sellers are just breaking.
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Now, here is a chart showing the trend of this indicator for BTC:
Bitcoin's SOPR seems to have flattened recently | Source: CryptoQuant
When the index shows rising values, it means that investors have started to make a profit by selling their coins.
A declining value, on the other hand, means holders are throwing their coins at a loss, probably because they have no confidence in crypto.
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As the graph above shows, SOPR values are not decreasing or increasing lately. The curve of the indicator is now a plane.
This is despite the recent big move by Bitcoin, where usually some investors start to collect their profits, but this time it doesn’t seem like it.
Such a trend may be because the majority of holders think that the price of the currency will be valued more so they are not revolving around their crypto.
The reluctance of investors to sell their bitcoins can be quite encouraging for cryptocurrencies. However, when holders start taking their profits, an amendment may probably hit.
At the time of writing, the price of Bitcoin is around $ 53.7k, up 25% in the last seven days. In the last thirty days, the value of the currency has risen 12%.
The chart below shows the price trend of BTC for 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