• A CryptoQuant post explains the Bitcoin adjusted Spent Output Profit Ratio (aSOPR) and how it indicates whether the average Bitcoin investor is selling at a profit or at a loss.
• The aSOPR EMAs are looking to form a golden cross soon, which suggests a possible bottom for the Bitcoin market.
• The previous bear market bottoms were marked by the aSOPR being greater than 1, indicating that the investors were selling coins at some profit.
The Bitcoin adjusted Spent Output Profit Ratio (aSOPR) is an important metric indicating whether the average Bitcoin investor is selling at a profit or at a loss. Recently, a CryptoQuant post explained how the aSOPR EMAs are looking to form a golden cross, which could potentially signal a bottom for the Bitcoin market.
The Spent Output Profit Ratio (SOPR) is a metric that measures whether an investor is selling at a profit or a loss. It takes into account the amount of coins that were bought and sold, and then calculates the difference between the two. The Adjusted SOPR (aSOPR) is a modified version of the SOPR that excludes from the data all selling done within an hour of first purchasing the coins. The advantage of this is that it eliminates any noise in the data that would not have any significant implications on the market.
When the value of the aSOPR is greater than 1, it means that the holders are selling coins at some profit. On the other hand, values below the threshold suggest that the overall market is realizing some loss at the moment. The previous bear market bottoms were marked by the aSOPR being greater than 1, indicating that the investors were selling coins at some profit.
The CryptoQuant post also included a graph of the aSOPR trends during the 2014-2015 and 2018-2019 bear markets. The chart showed that the aSOPR EMAs were approaching a golden cross, which could potentially signal a bottom in the Bitcoin market.
The aSOPR is an important metric that can help indicate whether the current cycle has met all the bottom conditions. Investors should keep an eye on this indicator, as well as the other metrics, in order to make informed trading decisions.