Bitcoin Enters A New Phase As Profit-Taking Metric Picks Up Pace – Here’s What It Is

Bitcoin is charging to retest the $110,000 price level following a bounce that occurred last week, which may have rekindled bullish market sentiment. With Bitcoin’s price surging remarkably towards its current all-time high in the last few days, several key metrics appear to be picking up pace alongside this growth. 

As SOPR Climbs, Bitcoin Market Shift

As this week began, Bitcoin reclaimed the $109,000 level and is gradually heading toward higher price levels. On-chain data shows that the blockchain network appears to be stepping into a fresh chapter in its market dynamics.

Related Reading: Bitcoin STH Capitulation Signal Emerges – Historical Rallies Followed This Setup

Alphractal, an advanced data analytics and investment platform, shared this development on the X platform, capturing the attention of the market. The platform stated that Bitcoin has entered a new on-chain discovery phase, with blockchain data offering clear signs that the market dynamic is adjusting.

Presently, the Bitcoin Spent Output Profit Ratio (SOPR) Trend is rising as the flagship asset moves into this new discovery phase. It is important to note that the SOPR Trend Signal is a key metric that determines whether investors are currently realizing profits or losses. 

This crucial metric, which is on the rise, suggests the start of a longer bullish trend and indicates renewed confidence in Bitcoin’s upward trajectory, with healthier profit realization. One of the crucial qualities of this metric is how it uses on-chain behavior to capture market trends.

According to the on-chain platform, the SOPR Trend Signal is climbing for the third time in the ongoing bull cycle. Such a development has never been observed since the creation of the flagship asset, making this trend a critical moment in BTC’s market dynamics and direction.

Alphractal highlighted that this triple upswing in SOPR implies that BTC holders have had numerous chances to trade their coins and make large profits in less than a year. Should this trend hold, it might set the stage for a potentially strong new bull market run as Bitcoin’s on-chain behavior reaches new heights.

In the meantime, the platform warns that a bearish shift may be indicated if the blue line crosses below the orange line, which is visible on the chart. However, given that the bearish shift has not occurred, Alphractal has urged investors to watch closely and stay calm during market fluctuations.

BTC’s Realized Profit Grows After Sudden Price Bounce

A recent report from Ali Martinez, a seasoned technical expert and trader, has shed light on Bitcoin’s current profitability levels. Bitcoin investors are locking in more gains, with realized profits rising to levels not seen in months.

Related Reading: Bitcoin Profit Realization Hits $650 Billion—Already More Than Last Bull Run

As the flagship asset’s price surges, data shows a huge rise in profit-taking activity, which indicates that investors are taking advantage of the newfound rally to secure gains. After examining the Bitcoin Sell-side Risk Ratio, Ali Martinez revealed that more than $9.2 billion in profits have been realized from BTC. This large value in realized profits is a result of BTC’s current rally, adding an extra layer of momentum to the upward trend.