GlossarySOPR
SOPR
SOPR (Spent Output Profit Ratio) compares, for all bitcoin moved on a given day, the value when spent with the value when created. The number shows whether the market sold at a profit or at a loss on average that day.
How to read it
The line at 1 is the core of the indicator. From 1 the curve turns turquoise, below that red.
- Above 1: Moved coins were spent at a profit on average; the market is taking profits.
- Below 1: At a loss on average, a sign of capitulation or forced selling.
- In a bull market, 1 has historically often held as support: when the SOPR falls to 1, holders are reluctant to sell at a loss, and supply dries up.
- In a bear market, 1 has often acted as resistance: anyone back at break-even gets out.
- Longer phases clearly below 1 marked lows in the past, at which weak hands gave up their coins.
Limitations
- Not every move is a sale. Transfers between your own wallets or within an exchange count too. Young coins moved again shortly after creation have almost the same price going in and out and pull the value toward 1.
- Daily noise: Individual days swing strongly. Watch the behavior over several days, especially around 1.
- Daily values: On an hourly chart the same value stays for one day; on weekly and monthly candles, the value from the first day of the candle. The pane header names the date of the latest value.
- Bitcoin only. The same series with colored zones is available as the study “mantacharts: Bitcoin SOPR”.