MVRV and SOPR Indicators Show a Bullish Trend On the BTC Market
The Spent Exit Profitability (SOPR) and Bitcoin Market to Realized Value (MVRV) are still showing a bullish trend.
The SOPR is an on-chain indicator that shows whether the market as a whole is in profit or loss. An SOPR value> 1 indicates that market participants are making a profit from the sale of Bitcoins. Accordingly, if the coefficient is <1, this indicates that traders are losing.
A market move above 1 after a bearish breakout could represent a relief rally if the SOPR fails to gain a foothold above 1. But if the market is in profit (green) for a long time and then goes to a loss (red circle), it’s a signal of a potential bearish trend reversal. If after that the market first returns to the state of profit, but then goes back to the territory of losses, this is a confirmation of a bearish trend reversal.
According to BeInCrypto analysis, at the time of writing, the SOPR indicator (orange) is showing that the Bitcoin market is in profit (above the 1 mark). But until we break below 1, it is too early to talk about a bearish trend reversal.
The MVRV indicator calculates the ratio of the market value to the realized value of Bitcoin. If its value is equal to 2, it means that the market capitalization is twice the realized capitalization.
At the time of writing, the MVRV is 2.2. As long as this indicator remains above the specified critical level, the uptrend will remain in effect.