SOPR says “buy the dip”
The last time SOPR went negative was July 20, right before Bitcoin took off to reclaim $50,000.
“Spent Output Profit Ratio went negative (green) yesterday as on-chain speculators were selling at a loss,” Philip Swift, an analyst at trading platform Decentrader, summarized to Twitter followers Thursday.
“Paints a v.similar picture to funding rates in recent months in that a lot of forced selling took place over the summer making this more of a buy-the-dip opportunity now.”
“Good news” for Bitcoin bulls
After the market cleared out those players, optimism has returned over more sustainable price gains.
For on-chain monitoring resource Whalemap, meanwhile, SOPR data likewise hints at the possibility of higher levels returning.
“SOPR around 1 in an up-trending market is good news,” staff commented on the metric’s current readings.
In private comments to Cointelegraph, the Whalemap team added that “a little bit more sideways” should first characterize the market before upside ensues.