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      Bitcoin's SOPR Indicator Signals Potential Market Cycle Reversal

      The Spent Output Profit Ratio (SOPR) for Bitcoin has recently broken out of an 11-month period of suppression, indicating a potential shift in the market cycle. This metric, which measures whether Bitcoin holders are selling at a profit or a loss, is closely monitored by analysts. A SOPR value above 1.0 suggests that coins are being sold for more than their purchase price, while a value below 1.0 indicates losses for sellers.

      CryptoQuant's analysis highlights that the long-term holder SOPR (LTH-SOPR) is approaching neutral territory, suggesting that long-term holders are not aggressively selling or taking profits. In contrast, the short-term holder SOPR (STH-SOPR) has shown patterns similar to those observed before the 2023 Bitcoin rally, with previous dips below 0.95 followed by rebounds above 1.0 correlating with price recovery phases.

      Additionally, Bitcoin has been trading within a range of $62,000 to $80,000, with buying pressure evident during dips towards the lower end of this range. The recent inflows into Bitcoin exchange-traded funds (ETFs) are contributing to a structural demand that supports these on-chain signals, as ETF products require actual Bitcoin to back their shares, thereby tightening supply.

      While the SOPR break is a notable development, analysts caution that it is not a definitive indicator of future price movements. A sustained price increase above the upper limit of the current trading range would provide stronger confirmation of a market cycle reversal.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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