Bitcoin Profit and Loss Indicator Shows Weak Bullish Signal

Bitcoin (BTC) on-chain spending is leading to profit states, but the SOPR bullish signal has not yet appeared. Techflow analyst Joao Wedsen explained that current BTC on-chain spending is in the 'profit dominance zone.' The SOPR indicator indicates whether the coins that have moved are, on average, in profit or loss states; a value above 1 indicates profit, while below 1 indicates loss. Wedsen noted that there have not yet been large-scale losses like those seen in 2022 during this downturn. He added that while the SOPR trend signal has been used for medium to long-term market judgments in the past, this time, that signal has not been generated. Wedsen stated that he will continue to observe until a bullish market is declared. Currently, the indicator does not clearly show a loss confirmation zone, but it can be interpreted as not meeting the conditions for confirming past lows. For Korean investors, the nature of on-chain spending is important, as the movement of coins in profit indicates that some holders are realizing their profits. Conversely, if large-scale losses are confirmed, it could be interpreted as market participants accepting losses and moving their holdings. The remaining issues are whether BTC will decline again and whether the SOPR signal will appear.

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