An analyst from CryptoQuant has shared insights on how Bitcoin may still have room to ascend, focusing on an on-chain indicator trend. This indicator, the Spent Output Profit Ratio (SOPR) of short-term Bitcoin holders, hasn't reached an overheated level. SOPR measures the profitability of spent outputs and is pivotal in understanding market sentiment.
The current analysis suggests that short-term holders of Bitcoin aren't in a position of realizing massive profits, indicating potential upward room before reaching an overheated state. This could mean a continuation of Bitcoin's upward trend in the near future. Observing SOPR trends can offer traders insights into when to enter or exit positions.
