Bitcoin, 9 Consecutive Days in Profit...Strongest On-Chain Signal Since October 2024 Detected

▲ Bitcoin (BTC)/ChatGPT generated image

Bitcoin (BTC) has shown key recovery signals in its on-chain profitability indicators amidst a recent price rebound. As holders continue to realize profits rather than losses, on average, when moving or selling Bitcoin, it's interpreted that market sentiment is improving.

U.Today reported on May 11 (local time) that the cryptocurrency analytics platform CryptoQuant shared data on Bitcoin's adjusted Spent Output Profit Ratio (aSOPR). This indicator uses 1.0 as a baseline to show whether Bitcoin holders are realizing a profit or incurring a loss when they move their coins.

According to CryptoQuant data, Bitcoin's aSOPR has surpassed the key baseline of 1.0 for 9 consecutive days. An aSOPR above 1 indicates that market participants are, on average, selling Bitcoin at a profit. Conversely, if it falls below 1, it suggests that coins are being moved at a loss.

This trend is noteworthy not just because the indicator exceeded 1. U.Today explained that Bitcoin's aSOPR maintaining above 1 for 9 consecutive days is a signal of a sustained profit-taking trend. The article body stated that this trend represents the longest period of profit-taking expenditure since October 2024.

Despite increased profit-taking activity by Bitcoin holders, the price trend has remained relatively robust. U.Today analyzed that with strong signals re-emerging in on-chain activity, selling pressure from holders is being significantly outweighed by demand from retail investors and institutions.

Bitcoin has confirmed a recovery in its profitability indicators along with the recent market rebound. The on-chain signal of aSOPR maintaining above 1 for 9 consecutive days is considered evidence that the demand base has not weakened, even in a phase where sellers are taking profits.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*