Bitcoin SOPR Flashes Bullish Signal Even After Shattering ATH – Here’s Why Analysts Are Betting on More Upside
Bitcoin’s Spent Output Profit Ratio (SOPR) just waved a giant green flag—and traders aren’t ignoring it. Despite hitting a jaw-dropping all-time high (ATH), on-chain data suggests the rally’s far from over.
The SOPR Secret Sauce
When SOPR stays above 1, it means investors are selling at a profit. Right now? It’s not just above 1—it’s screaming ‘hold.’ Historically, this pattern precedes extended bull runs, and crypto veterans are doubling down.
Wall Street Skeptics, Meet On-Chain Reality
Traditional finance pundits keep waiting for the ‘bubble’ to pop (spoiler: they’ve been wrong since 2009). Meanwhile, Bitcoin’s network metrics paint a different picture—one where smart money keeps stacking sats.
The Bottom Line
Price corrections? Inevitable. But with SOPR signaling sustained demand, even a pullback might just be the dip buyers’ next buffet. As always, DYOR—unless you enjoy taking financial advice from guys who still think ‘blockchain’ is a gym accessory.
STH SOPR Sits At 1.02, Suggests Market Not Overheating
In a recent quicktake post on CryptoQuant, a market analyst with username CryptoMe has shared some compelling insights on Bitcoin’s price trajectory amidst current market euphoria. As earlier stated, the flagship cryptocurrency experienced a significant price gain to brush nearly against the $120,000 mark.
Despite this rise, CryptoMe notes that short-term holders’ spent output profit ratio (STH SOPR) indicates that this class of investors are yet to engage in significant profit-taking. For context, The STH-SOPR measures the ratio of realized profits or losses by investors who’ve held BTC for less than 155 days.
A STH-SOPR reading above 1.0 indicates that BTC are being sold at a profit, while values below 1.0 indicate losses. Based on the chart below, sharp increases in this on-chain metric especially into the 1.05-1.20+ range (red zone) have correlated with profit-taking phases and can often precede local tops.
However, the STH-SOPR currently sits at 1.02, suggesting that although some short-term holders are in profit, no aggressive market distribution has commenced. This development is particularly bullish considering the STH realized price is presently at $100,000 indicating these investors are 17%-18% in profit and are opting to hold for further price gains.
Meanwhile, the analyst notes that this present on-chain situation aligns with the broader sentiment in the derivatives market. Open Interest is climbing, signaling growing participation, but funding rates remain neutral to slightly positive. This lack of extreme funding imbalances suggests that traders are not flooding the market with overleveraged long positions due to FOMO.
CryptoMe explains that all these factors indicate the Bitcoin market is far from overheating and there is still potential for more growth ahead.
BTC Price Overview
At the time of writing, bitcoin is trading at $117,840 indicating a 3.40% in the past day but a slight 0.82% decline from the present all-time high. Meanwhile, the asset’s daily trading volume is up by 96.53% indicating a strong market activity behind the ongoing rally backing the potential for a continuation.
Featured image from Pexels, chart from Tradingview
