Bitcoin Bull Run Not Over Yet? This Indicator Is Flashing Green

The cryptocurrency market is always in flux, but Bitcoin, the original and largest cryptocurrency, has been on a tear recently. After a period of consolidation, Bitcoin has surged back above $68,000, prompting many to wonder if the bull run is still alive and well.

One key indicator that suggests Bitcoin’s bullish momentum might persist is the Spent Output Profit Ratio (SOPR) ratio. This metric tracks the ratio between the SOPR for short-term holders (STHs) and the SOPR for long-term holders (LTHs).

STHs are those who have held Bitcoin for less than 155 days, while LTHs are those who have held it for longer. The SOPR ratio is essentially a measure of profit-taking, with a reading above 1 indicating that, on average, investors are selling Bitcoin at a profit. A reading below 1 indicates that investors are selling at a loss.

CryptoQuant analyst Axel Adler Jr. has recently highlighted a key trend in the Bitcoin SOPR ratio. The ratio has recently crossed above its 90-day moving average (MA), a pattern that has historically been bullish for Bitcoin.

What does this mean? It suggests that LTHs are increasing their profit-taking compared to STHs. This is often a sign of a strong bull market, as LTHs tend to hold on to their Bitcoin for long periods and are therefore more likely to see significant gains.

STHs, on the other hand, have a lower cost basis and therefore may be more likely to sell at lower prices. The fact that LTHs are now increasingly taking profits suggests that they believe Bitcoin’s price has further upside potential.

Of course, it is important to remember that past performance is not indicative of future results. While the SOPR ratio crossing its 90-day MA has historically been a bullish signal, it’s not a guarantee that Bitcoin will continue to rise.

However, this indicator, combined with Bitcoin’s recent price surge, suggests that the bull run may not be over just yet. It’s worth noting that the SOPR ratio has reached a value of 1.8, which is a significant increase from its recent lows. While a ratio above 7 has historically been associated with market tops, the current reading still leaves room for further upside potential.

Whether the bull run continues or not, it’s clear that Bitcoin remains a volatile asset. Investors should be aware of the risks involved before investing in Bitcoin or any other cryptocurrency.

**Disclaimer:** This article is intended for informational purposes only and should not be considered financial advice. Investing in cryptocurrency carries inherent risks, and it is crucial to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.