Bitcoin SOPR Exceeds 1 for Three Weeks, Trend Reversal Conditions Needed

The Bitcoin (BTC) on-chain profit indicator, SOPR, has remained above 1 since August 19, marking the longest profit period of the year. Currently, the SOPR is recorded at 1.002. SOPR is an indicator that compares the realized price of coins moved on-chain to the previous trading price; a value above 1 indicates that transactions are occurring on average at a profit. This profit period is the longest since 2026, but merely staying above 1 does not confirm a long-term price direction or the end of a bear market. There are analyses suggesting that the recovery of short-term holder SOPR above the breakeven point could indicate a structure similar to the initial recovery phase of a bull market. However, to determine an actual trend reversal, both price movement and the sustainability of the indicator must be confirmed together. David Puell, a portfolio manager at ARK Invest, warns that the risk of decline still remains, stating that for a long-term judgment to change, the SOPR must stay above 1 for an extended period, and prices should not drop to new lows while investors continuously realize profits.

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