New Bullish Phase Signal for Bitcoin: Long-Term Holders Have Not Yet Taken Profits

CryptoQuant views the indicator tracking the profit behavior of long-term Bitcoin holders crossing above 1 as the beginning of a new bullish phase.

The SOPR indicator, which tracks whether coins spent by long-term holders are in profit or loss, has risen above 1 for Bitcoin. CryptoQuant states that this movement indicates the market has transitioned from a bearish period into a neutral zone and signifies the start of a full-scale bullish phase.

SOPR rising above 1 indicates that long-term holders have begun moving their coins at an average price above their cost basis. However, in the current cycle, the indicator has not yet exceeded the level of 6, which is associated with historical peaks.

In the long-term chart shared by CryptoQuant, SOPR can be seen reaching regions of 6 and above during previous cycle peaks. The movement in the current cycle remains below this level.

The actual profit-taking period for Bitcoin has not yet been seen

According to the source’s assessment, this cycle has not yet experienced a period where long-term holders took significant profits. Therefore, the process so far is seen as a preparatory phase before a new rally.

Bitcoin holdings of long-term investors are also at an all-time high. These investors continued to accumulate until recently. CryptoQuant predicts that the cycle peak could occur in the profit-taking zone where SOPR rises above 6, as seen in past examples.