Bitcoin prices have been relatively stable between $26,000 to $28,000 for most of May.
Several on-chain metrics suggest that investor and market sentiment may be shifting beneath the surface.
The Spent Output Ratio (SOPR), is a useful indicator of market profitability. The SOPR value is greater than 1, which indicates that coins were sold in average at a profit during the period. A SOPR value below 1 indicates that, on average coins are being sold at loss.
SOPR has been trending downwards and is approaching the critical threshold level of 1. This may be a cause of concern but it’s important to remember that declining SOPR values can also be an indication that investors are holding assets in anticipation of favorable market conditions and higher prices.
The Sell-side risk ratio provides valuable insight into the overall pressure on the sell-side in the market by comparing the total USD…