Profits or HODL? What the SOPR Metric Tells Us About the BTC Rally.
The price of BTC has broken above $108k. But who is selling in this rally? And who is buying? On-Chain analysis gives us the answer.
Today's Metric: Short-Term Holder SOPR
* What is it? This metric shows us whether newer investors (who bought BTC in the last 155 days) are, on average, selling at a profit (SOPR > 1) or at a loss (SOPR < 1).
* What Are We Seeing Now? With the strong rise above $108k, the SOPR has jumped above 1.
* Translation: Short-term investors who bought at the lows during last week's drop are now realizing some of their profits. This is a healthy and expected move in any recovery.
* The Key Point to Watch (The Bullish Signal):
* In a strong and healthy uptrend, the SOPR level = 1 tends to act as support. If the price of BTC makes a small correction in the coming days and the SOPR "bounces" at this level of 1 (i.e., sellers stop taking profits and new buyers enter), it is a strong signal that the uptrend has the strength to continue.
* Analytical Synthesis: Realizing short-term profits is normal. The real test of market strength will be to see if new buyers can absorb these sales, keeping the SOPR above 1. This is what differentiates a simple "relief rally" from a new sustainable uptrend.
Today's on-chain lesson: Is the market healthy enough to absorb profit-taking? The SOPR metric will help us answer that.
🔥 Do you already use SOPR in your analyses? What is your favorite on-chain metric? Comment!
