BTC ON-CHAIN ANALYSIS: SOPR

ON-CHAIN analysis can be equated with fundamental analysis in the world of cryptocurrency. From now, I will try to do some of the analysis available in Trading View.
The SOPR index is one of the available on-chain data in Trading View. SOPR is an Abbreviation of The Spent Output Profit Ratio (SOPR). it is computed by dividing the realized value (in USD) divided by the value at creation (USD) of a spent output. Or simply: price sold / price paid. In fact, this index shows whether investors are in profit or in loss?
When SOPR> 1, it means that the owners of the BTC are in profit and when SOPR< 1, they are at a loss
during a bull market values of SOPR below 1 are rejected: In a bull market, when SOPR falls below 1, people would sell at a loss, and thus be reluctant to do so. This pushes the supply down significantly, which in turn puts upward pressure on the price, which increases.
during a bear market values of SOPR above 1 are rejected: In a bear market, everyone is selling or waiting for the break-even point to sell. When SOPR is close/greater than 1, people start to sell even more, as they reach break-even. With a higher supply, the price plunges.
This indicator can be used in another way - is the price relatively cheap or relatively expensive?
Based on historical data, I have drawn OVERBOUGHT and OVERSOLD areas. At low prices, investors tend to buy, which in turn will increase prices, and at high ratios, investors will tend to sell.
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