Bitcoin Retests $110,000 Level as SOPR Trend Signals Bullish Phase

Bitcoin has been making significant strides, retesting the $110,000 price level following a notable bounce last week. This surge has reignited bullish market sentiment, with several key metrics indicating a shift in market dynamics. As the week began, Bitcoin reclaimed the $109,000 level, gradually moving towards higher price points. On-chain data suggests that the blockchain network is entering a new phase, marked by adjustments in market behavior.

Alphractal, an advanced data analytics and investment platform, highlighted this development, noting that Bitcoin has entered a new on-chain discovery phase. This phase is characterized by a rising Bitcoin Spent Output Profit Ratio (SOPR) Trend, a crucial metric that indicates whether investors are realizing profits or losses. The increasing SOPR Trend Signal suggests the start of a longer bullish trend, reflecting renewed confidence in Bitcoin’s upward trajectory and healthier profit realization. This metric captures market trends through on-chain behavior, providing valuable insights into investor sentiment.

According to Alphractal, the SOPR Trend Signal is climbing for the third time in the current bull cycle, a phenomenon never observed since Bitcoin’s inception. This triple upswing implies that BTC holders have had multiple opportunities to trade their coins and make substantial profits within a short period. If this trend continues, it could pave the way for a strong new bull market run, as Bitcoin’s on-chain behavior reaches new heights. However, Alphractal cautions that a bearish shift may be indicated if the blue line crosses below the orange line on the chart. Despite this potential risk, the platform advises investors to stay calm and monitor market fluctuations closely.

Meanwhile, technical expert and trader Ali Martinez has provided insights into Bitcoin’s current profitability levels. Data shows a significant rise in profit-taking activity, with realized profits reaching levels not seen in months. This surge in profit-taking indicates that investors are capitalizing on the recent rally to secure gains. Martinez revealed that over $9.2 billion in profits have been realized from BTC, adding momentum to the upward trend. This large value in realized profits is a direct result of Bitcoin’s current rally, further bolstering the bullish sentiment in the market.