- Very Basically SOPR (Spent Output Profit Ratio) measures the price bought versus price sold. ( but it's more complex than that )
- Negative SOPR typically means people are selling for a loss. ( red dotted Lines columns ) - Positive SOPR typically means people are selling for a win. ( Blue dotted Lines colums )
- So what we can notice and deduct from this graph ?
- Simply that we are not perfect. - The Fear and The Greed.
- We scare when the price goes up too much. - We fear when the price goes down too much. - Most of the time we sell to early. - Most of the time we sell when it's time to buy.
"Human being is the fact to be imperfect anyway"
Happy Tr4Ding !
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1D timeframe.
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So to interpret basically what's happening..when we see a big red columns and the price remains stable. it means small fishes are dropping BTC and Whales are buying everything. Don't give them your Bitcoins..
Thank you for sharing, we agree with your trade idea.