Bitcoin SOPR Falls to 1.35, Suggesting Local Bottom as Profit-Taking Eases
Bitcoin’s Spent Output Profit Ratio (SOPR) has dropped to about 1.35—the lowest level since early 2024—according to Coinotag reporting CryptoOnchain data. With BTC trading near $89,700, analysts interpret the decline as a profit-taking reset: realized gains are cooling and near-term selling pressure may be approaching exhaustion. Historically, SOPR troughs at similar levels have coincided with local market bottoms and preceded orderly uptrends. Traders are advised to treat SOPR as one of several on-chain signals—combining it with liquidity metrics and price action—rather than relying on it in isolation. Key facts: SOPR ≈ 1.35, BTC ≈ $89,700, lowest SOPR since early 2024. Primary keywords: Bitcoin SOPR, SOPR ratio, Bitcoin price, on-chain indicators. Secondary/semantic keywords: profit-taking reset, selling pressure exhaustion, local bottom, liquidity signals, price action.
Bullish
A decline in Bitcoin’s SOPR to 1.35 signals that realized profits are cooling and short-term selling pressure may be waning—conditions that have historically aligned with local bottoms and precede recoveries. For traders, this is a cautiously bullish indicator: it suggests reduced immediate downside risk and the potential for price stabilization or an orderly uptrend if liquidity and buying interest follow. However, SOPR is not a standalone buy signal. Similar past episodes (e.g., SOPR troughs in prior drawdowns around 2019–2021 and 2023) required confirmation from rising on-chain activity, improving funding rates, and price reclaiming key moving averages before sustained rallies occurred. Short-term impact: reduced likelihood of sharp momentum-driven sell-offs, creating swing-trading buy opportunities around support. Long-term impact: if confirmed by volume, inflows (e.g., ETF or exchange flows), and stronger on-chain demand, the SOPR trough could mark the start of a broader bullish phase. Risk factors include renewed macro shocks, liquidity withdrawals, or failure of price to hold support—any of which could invalidate the bullish signal. Traders should combine SOPR with liquidity metrics, funding rates, order-book depth, and price action to time entries and manage risk.