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HomeUncategorizedBitcoin (BTC) On-Chain Analysis: Longevity Indicator Suggests Reversal is Coming

Bitcoin (BTC) On-Chain Analysis: Longevity Indicator Suggests Reversal is Coming

Be[In]Crypto Check out Bitcoin (BTC) on-chain metrics, especially the Spend-Output Profit Ratio (SOPR) and RHODL ratio .


SOPR is to show whether the market is in An on-chain indicator of profit or loss status. A reading above 1 (the black line) indicates that the market is generally profitable, while a reading below 1 indicates an overall loss.

The main feature of a bullish trend is that SOPR bounces on a single line instead of breaking below it.

SOPR fell below one (black circle) in January 2018. This indicates that the bullish trend is over. It then bottomed out on December 11 of the same year with a reading of 0.86. Bottomed 11 months after the first crash.

In the current bull market, SOPR fell below 1 (red circle) in May 2021. On June 18, it reached a value of 0.928. This is the third-lowest value on record, just above the December 2018 and March 2020 values. The low was reached 13 months after the SOPR first fell below 1.

After the 2018 bottom, SOPR broke 1 on April 5, 2019. This confirms that the bottom has been entered. Currently, SOPR is trying to break out of the 1st August 5th (red arrow). Although the attempt was unsuccessful, the indicator is preparing for another breakout attempt.

If SOPR moves up, it will confirm that the bottom has been entered.


RHODL Ratio is an indicator that consists of 1 week and The ratio between HODL Wave bands for 1-2 years is created. A reading above 50,000 (highlighted in red) indicates that a significant portion of the BTC supply is in the hands of short-term holders.

This reading is usually associated with the top, as was the case for the 2013 and 2017 peaks. That’s not the case, however, at its peak sales in 2021, which sold around 14,000.

The RHODL ratio is currently at 360, slightly above the 350 ratio that is considered oversold. It is worth mentioning that the RHODL ratio dipped below 350 on August 11 before eventually rising above that level.

Historically, a dip into oversold territory followed by a rise above is a sign of a market bottom.

Additionally, an ascending support line connecting the 2015 and 2019 bottoms can be drawn. If the line holds, it would indicate that the ratio has bounced back at the line again and confirms a BTC market bottom.

For Be[in]Crypto’s latest news Bitcoin (BTC) analysis, click here


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