GlossaryBitcoin SOPR
Bitcoin SOPR
The Spent Output Profit Ratio: the ratio of sale value to cost basis of all bitcoin moved on-chain in a day, colored by zones. Above 1 the market is realizing profits on average, below 1 losses.
Zones
| Zone | Range |
|---|---|
| Heavy profit-taking | from 1.05 |
| Moderate profits | 1.00 to 1.05 |
| Moderate losses | 0.95 to 1.00 |
| Selling at a loss | below 0.95 |
The 1 is drawn as a bold middle line, and reference lines sit at 0.95 and 1.05.
How to read it
- The 1 as support: In a bull market, holders are reluctant to sell below cost. When SOPR falls to 1 in corrections, supply often dries up and the line turns back up.
- The 1 as resistance: In a bear market, many holders use the return to cost basis to exit. Recoveries then run into the 1 from below.
- Low values below 0.95: Broad selling at a loss, typical of capitulation phases.
- High values above 1.05: Heavy profit-taking, often in overheated phases.
Limitations
- Noise: The daily value covers all moved coins, including short-term transfers that have little to do with profit and loss. Individual outliers are normal; what is meaningful is the behavior around 1 over several days.
- Right edge: Each daily value holds until the next one is available. At the right edge, the line can therefore run flat for a few candles.
- Bitcoin only, intended for daily to weekly charts. The only settings are for appearance.