The Bitcoin SOPR (Spent Output Profit Ratio) has fallen to 1.35, marking the lowest level since early 2024. This indicates a significant shift in market sentiment, with reduced profit-taking activity and a potential signal for a market reset.
This decline in the SOPR ratio suggests that selling pressure is waning, which could be a precursor to bottom formation in the current Bitcoin market correction, potentially paving the way for a new bullish phase.
Bitcoin SOPR Reaches 1.35: Possible Market Bottom
The Bitcoin SOPR ratio has declined to 1.35, the lowest it has been since early 2024, according to CryptoOnchain. This decrease signifies that the market is undergoing a reset. At approximately $89,700, Bitcoin's price is seeing reduced profit-taking by long-term holders, implying that selling pressure is nearing exhaustion.
With the SOPR ratio at its lowest point since the beginning of 2024, Bitcoin is experiencing a market cooling phase. This period might signal a local bottom. Historically, such declines in the SOPR ratio have often preceded trend reversals, potentially leading to a renewed uptrend.
The market has taken note of the decrease in long-term profit-taking, which suggests a possible easing of sell pressure. This shift could support new inflows and increased demand, further contributing to a future uptrend in Bitcoin prices.
"A sharp decline in the SOPR ratio to ~1.35 typically indicates that long-term profit-taking is waning and selling pressure is nearing exhaustion, a signal often aligned with local bottom formations." — Will Clemente, On-chain Analyst, Reflexivity Research
Historical Trends and Future Bitcoin Market Signals
Historical patterns demonstrate that when the Bitcoin SOPR ratio approaches cycle lows, it frequently coincides with the formation of a local bottom. This consistent signal has influenced market sentiment and buying behavior, contributing to subsequent price uptrends.
Bitcoin is currently priced at $89,719.49, with a substantial market capitalization of $1.79 trillion. Its market dominance is reported at 58.69%. Over the last 24 hours, Bitcoin's trading volume reached $61.14 billion, with a 2.77% decrease in price.
Insights from the Coincu research team indicate that the current decline in the SOPR ratio aligns with historical market resets, offering potential bullish signals. If the macroeconomic environment remains stable, this could catalyze future gains and potentially influence market regulations and technological advancements.