found that the coin’s Spent Output Profit Ratio indicator on an 80-day moving average also remained sideways.The SOPR metric tracks the profit or loss made by coin holders by analyzing the difference between the price at which they acquired their coins and the price at which they are being spent or moved on the blockchain.
According to Wedson, in the current BTC market, this suggests a possible distribution scenario, where short-term holders may be selling their coins while the market remains vulnerable to a price drop.BTC’s price trading within a tight range and a sideways movement of its SOPR indicator indicate a period of consolidation or indecision among its investors.
Assessing BTC’s Bollinger Bands indicator on a 24-hour chart lent credence to this position. At press time, its price traded in the middle of the upper band and lower band of the Bollinger Bands. Also, at -92.12k at press time, BTC’s On-balance volume has remained sideways since the end of April. The indicator uses volume data to track the flow of money into and out of an asset.