Bitcoin Spent Output Profit Ratio Signals Potential Buying Opportunity

Recent economic data and profit-taking have impacted a bitcoin (BTC) rally, but on-chain metrics suggest current price levels may present a buying opportunity for investors. Key points include:

Bitcoin's Spent Output Profit Ratio (SOPR) is at 0.987, indicating short-term holders are selling at a loss.
This scenario historically precedes price recoveries, suggesting potential accumulation opportunities.
Indicators such as Market Value to Realized Value and the Puell Multiple indicate the market has not peaked yet.
Short-term investor ratio stands at 60%, reinforcing the bullish outlook according to CryptoQuant analyst MAC_D.
BTC approached $95,000 after dropping to near $90,000, down from a weekly high of above $120,000.
U.S. economic data led to rising treasury yields, negatively affecting equities and risk assets like bitcoin.
Traders await U.S. non-farm payrolls (NFP) data, which could influence future market positioning.

The SOPR metric helps gauge market sentiment; values below 1 indicate potential capitulation or market bottoms, making it a critical factor for buying decisions. MVRV is used to assess whether BTC is overbought or oversold.