Bitcoin’s Spent Output Profit Ratio (SOPR) has broken above an 11-month downtrend, according to CryptoQuant analyst Crypto Dan. SOPR measures whether coins moved on-chain are being sold at a profit or loss. A sustained move higher is typically seen as a sign of improving investor profitability and healthier market sentiment.
The analyst said the end of the prolonged downtrend points to a possible bullish reversal. Historically, similar SOPR improvements have coincided with periods when holders were more willing to realize profits, indicating stronger demand and easing selling pressure. The breakout adds to a growing number of on-chain signals showing improving momentum, although it does not guarantee future price gains.
Traders and long-term investors are likely to watch whether the metric can maintain its upward trajectory in the coming weeks, especially as Bitcoin tests key resistance levels. The broader market remains mixed, with thin trading conditions and some uncertainty, so confirmation from sustained SOPR strength and price action will be important for the recovery narrative.
