SOPR (Spent Output Profit Ratio)

Yo, imagine you're at a lit garage sale where everyone has the tea on what they originally paid for their stuff. 💸

If everyone's asking more than they paid, we're talking "profit sale," my dude. If it's priced lower, then it's a "loss sale." 🛒

That's exactly what SOPR vibes about Bitcoin moves. It tracks if the coins are flexing at a profit or takin' an L compared to when they were scooped up. 💻

📖 What's SOPR All About?

SOPR is like the receipt checker, showing if BTC gang is selling for gains or losses based on what they dropped on it originally. 📲

SOPR = Price sold / Price paid​

This lil' tracker peeps all bitcoins movin' within a timeframe to see if peeps are profiting or nah. 📈

While SOPR thinks moved coins = sales, sometimes they're just zooming between wallets like a digital relay race. 🏃‍♀️💨

Even with that, SOPR gives a pretty chill guess if the whole squad's making bank or feeling the burn.

Shoutout to Renato Shirakashi for cooking up SOPR!

Example Time

• Picture grabbing 1 BTC at $30k, then flipping it for $36k. Your SOPR for that move is $36k ÷ $30k = 1.2 (a sweet 20% gain). 💰
• If lots of BTC trades in a day have SOPR > 1, fam is securing the bag. SOPR < 1, folks are taking an L. 😬

🔍 Decode the Chart

This chart titled “Bitcoin: Spent Output Profit Ratio (SOPR)” spills the tea on how profitable or not-so-profitable Bitcoin moves are when coins get shifted (spent), and ties it to BTC price vibes. 📊

📊 Chart Deets

• 🟩 Green/🟥 Red Bars: SOPR (Spent Output Profit Ratio)
  • Green = gains (SOPR > 0) 💹
  • Red = losses (SOPR < 0) 🔻
• ⚫ Black Line: BTC/USD Spot Price

📈 Reading the Vibes

• SOPR > 1 (green) → Coins sold for the W.
• SOPR < 1 (red) → Coins sold straight-up in the negative.
• SOPR ~ 1 → Just chillin' (current price = what it was scooped for).

Noteworthy Stuff:

• During bull runs, SOPR stays green → folks cashing in them gains.
• Bear markets vibes, SOPR goes red → Loss city, panic selling like whoa.
• Those red SOPR spikes (2018, 2020, 2022, early 2023) are like “bottom’s in” alerts.
• Strong SOPR > 1 in 2021 and 2024 is when BTC’s riding that rocket. 🚀

In the chart:

• SOPR is generally good vibes → Most moved coins are in the green zone. 🌈
• No major red drama lately, so no one's just dumping everything. 😌
• Hints at bull market vibes hanging strong, with some kinda like healthy gains taking.

🧠 So, Why Do Traders Care?

Check the Trends:

• SOPR Rising: More profits rolling in, maybe meaning people are vibing with the market, or just that those hodl coins are hitting the streets again.
• SOPR Falling: More L’s being taken, or peeps are just sitting tight on their winners, feeling those fear vibes.

Support/Resistance Vibes:

• SOPR 1 often chillin' as a mental support/resistance level. 📉
• Bulls go bouncey bounce at 1, bears might just linger below it in those not-so-fun times.

More Tips:

• SOPR back to 1 post-dips? Could be a bullish continuation (aka uptrend lifeline).
• Consistent SOPR < 1 can scream bear vibes or stressin' the consolidation.
• Epic negative SOPR peaks sometimes hint at max pain + maybe a bottom?

📜 Storytime with History

Peep these legendary hits showing how SOPR spilled the beans on Bitcoin market feels:

November 2022: FTX Crash & Market Panic

• November 2022 hit different with the FTX flop bringing Bitcoin to around $16k.
• SOPR slid from 0.99 to 0.87, as everyone fumbled and sold their bags in a loss frenzy.
• This was big-time panic mode, but then Bitcoin picked up, zooming past $20k in no time. 🚀

March 2021: Cashing Out Near Peaks

• March 2021, Bitcoin nearing $61k, SOPR shot over 1.15.
• That was the signal that peeps were cashing out hard, usually followed by a dip.
• Yep, BTC pulled back soon after, proving SOPR knows when the top’s too hot. 🔥

July 2021: SOPR Reset & Bullish Revival

• May 2021 correction hit, BTC chilling around $30k. By July, SOPR dipped below 1, showing sales were in the L-zone.
• That “SOPR reset” is like market's chill pill, letting OGs buy in.
• After that, BTC rally resumed, breaking records later in 2021. 📈

🟠 The SparkNotes Summary

SOPR's your real-time debrief on whether Bitcoin ballers are saying "Mission Accomplished" or "Cutting Losses." Keeping tabs on SOPR vibes can point out profit hoarding, market burnout, and potential flips in trend direction. 🔄

SOPR Value	Meaning	Signal
> 1.0	Selling in the green	Bullish vibes strong
= 1.0	Breaking even	Neutral vibes / testing vibes
< 1.0	Selling in the red	Freak-out city or bearish vibes
Major dives	Panic selling, yikes!	Possible bottom spotting