Bitcoin SOPR Breaks 11-Month Downtrend, Pointing to Potential Bullish Reversal
Key Takeaways
- •Bitcoin's SOPR has broken above an 11-month downtrend, according to CryptoQuant analyst Crypto Dan, potentially signaling a bullish market reversal.
- •SOPR measures whether Bitcoin holders are selling at a profit (above 1) or a loss (below 1), with sustained increases interpreted as improving market conditions.
- •Historically, SOPR improvements have coincided with investors realizing profits amid stronger demand, while extended downtrends have aligned with capitulation phases.
- •The breakout suggests selling pressure may be easing and adds to a growing number of on-chain indicators showing improving momentum.
- •Traders will watch whether the indicator maintains its upward trend as Bitcoin tests key resistance levels, alongside metrics like realized profits and exchange flows.
Bitcoin’s Spent Output Profit Ratio (SOPR) has broken above an 11-month downtrend, a development that could signal a shift in market momentum, according to CryptoQuant analyst Crypto Dan. CryptoQuant is one of the most widely used on-chain analytics platforms, and its analysts regularly track profitability metrics to gauge market behavior.
SOPR is an on-chain metric that measures whether Bitcoin holders are selling their coins at a profit or a loss. When SOPR is above 1, coins being spent on average are realizing profits; below 1, they are being sold at a loss. A sustained move higher in the indicator is often interpreted as a sign of improving market conditions and stronger investor confidence.
The latest breakout suggests selling pressure may be easing after an extended period of weakness.
Breakout Signals Potential Trend Change
According to Crypto Dan, the end of the prolonged downtrend in Bitcoin SOPR points to the possibility of a bullish market reversal.
Historically, improvements in SOPR have coincided with periods when investors become more willing to realize profits, reflecting stronger demand and healthier market conditions. Conversely, extended SOPR downtrends have tended to align with phases of capitulation, where coins move at losses as weaker hands exit. While the indicator alone does not guarantee future price gains, analysts often view it as an important confirmation of changing market sentiment.
The signal adds to a growing number of on-chain indicators showing improving momentum.
BULLISH: Bitcoin’s SOPR has broken an 11-month downtrend, signaling a potential bullish reversal, per CryptoQuant analyst Crypto Dan. pic.twitter.com/rJcf0Vak8k — Cointelegraph (@Cointelegraph) September 3, 2026 (x.com/Cointelegraph/status/2095430368543342973?ref_src=twsrc%5Etfw)
Investors Watch On-Chain Data
The latest Bitcoin SOPR breakout will be closely watched by traders and long-term investors looking for confirmation of a broader market recovery.
As Bitcoin continues to test key resistance levels, on-chain metrics such as SOPR, realized profits, and exchange flows remain valuable tools for assessing market health. Exchange flows in particular are watched alongside SOPR because large inflows to exchanges can signal intent to sell, while sustained outflows are often read as accumulation. Investors will monitor whether the indicator can maintain its upward trend in the weeks ahead.
Source: CoinoMedia
