- Bitcoin's SOPR golden cross signals a rare bull market surge, hinting at a sharp rise within months.
- Historical SOPR trends show Bitcoin rallies often peak after golden crosses, marking a "final phase" before steep gains.
- Rising investor confidence and profitability metrics suggest Bitcoin’s bullish momentum is accelerating.
A powerful bullish signal has emerged in Bitcoin’s market trajectory, indicating a significant rise within 1-2 months. According to DanCoinInvestor, a crypto analyst at CryptoQuant, a golden cross in the Spent Output Profit Ratio (SOPR) indicator has surfaced, marking its second occurrence in the current upward cycle that began in January 2023. This rare event, exclusive to bull markets, historically precedes sharp price surges.
Golden Cross Indicates Market Strength
The SOPR tracks whether Bitcoin transactions result in profit or loss. Although readings below 1.0 indicate losses, those above 1.0 indicate profitable activity. Short-term bullish momentum overtakes long-term trends when the 30-day SOPR crosses over to the 365-day SOPR, forming a golden cross.
Source: CryptoQuant
Such intersections have historically coincided with robust Bitcoin rallies. Besides confirming rising profitability, these patterns often suggest growing market confidence. The latest golden cross hints at a potential sharp rise as the market nears the later phase of the bull cycle.
Historical Context and Future Projections
Past market cycles reveal a consistent SOPR-price relationship. During bull market peaks, the 30-day SOPR typically dips below the 365-day average, signaling corrections. However, during the recovery phases, the opposite occurs, as is evident now.
DanCoinInvestor predicts the expected surge could lead to a “final phase” rally by late 2024 or early 2025. Historically, these final phases bring steep upward price movements as investor optimism peaks. Additionally, shorter correction periods during such phases often amplify upward momentum.
Investor Sentiment and Market Dynamics
The recovery in SOPR metrics reflects growing profitability across Bitcoin transactions. Significantly, a rising 365-day SOPR suggests improving long-term market sentiment. Moreover, this trend underscores renewed investor confidence as inflows increase.
Consequently, Bitcoin’s current trajectory aligns with historical bullish indicators, making this phase critical for investors. Furthermore, new funds entering the market could amplify the anticipated rally, creating substantial gains.
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