The short term and long term SOPR indicators are both starting to indicate the bull is about to return

In a post yesterday I talked about a long followed bitcoin indicator that has a good track record of picking bottoms in a bull market.

The indicator is called the SOPR (Spent Output Profit Ratio) and the post I referenced can be seen here:

While the SOPR mentioned in that post is based on a 24 hour moving average, the longer term 7 day moving average SOPR is starting to look similar as well.

Check it out:

(Source: https://twitter.com/CryptoHamsterIO/status/1353972416561565697/photo/1)

For more information on exactly what the SOPR is and what it represents, feel free to visit the post I linked above.

What you need to know...

From an investing standpoint, really all you need to know about the SOPR is this...

When the ratio approaches a reading of 1 in a bull market, it's time to buy, which is evidenced in the chart above.

Based on the chart above, bitcoin may not quite be ready to head north just yet, but it is getting close.

When you combine the SOPR with a 24 hour moving average and the SOPR with a 7 day moving average both flashing a 1 (or close to it), it further strengthens the idea that bitcoin is probably close to bottoming and resuming it's bull market.

While it's no guarantee that prices can't go lower first, it does have a pretty strong track record of being right, as evidenced in the chart above.

With the Bitcoin for Corporations Event now a little over a week away, that may be the catalyst that ends up pushing the price of bitcoin up and out of this consolidation pattern.

More about that even can be seen here btw:

It's a presentation by some of the largest players in crypto and it's being presented to thousands of corporations and executives of corporations.

I suspect it is going to be a very big deal for bitcoin, even if the impact of it isn't felt in the price immediately.

Stay informed my friends.

-Doc

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