Spent Output Profit Ratio | JeffreyTimmermans

SOPR

The "Spent Output Profit Ratio", aka SOPR indicator is a valuable tool designed to analyze the profitability of spent Bitcoin outputs. SOPR is derived by dividing the selling price of Bitcoin by its purchase price, offering insights into market participants' profit-taking or loss-cutting behavior.

This script features two selectable SOPR metrics:

• SOPR 30D: A 30-day Exponential Moving Average (EMA) for short-term trend analysis.
  
• SOPR 365D: A 365-day EMA for assessing long-term profitability trends.
  

How It Works

• Key Levels: The horizontal reference line at 1.0 acts as a critical threshold:
  
• Above 1.0: Market participants are generally in profit, indicating bullish sentiment.
  
• Below 1.0: Market participants are selling at a loss, often signaling bearish sentiment.
  

Background Colors

• Green: Indicates bullish conditions when the selected SOPR value is above 1.
  
• Red: Highlights bearish conditions when the value is below 1.
  

Dynamic Selection

• Easily switch between SOPR 30D and SOPR 365D in the settings for tailored analysis.
  

Features

• Customizable SOPR Selection: Toggle between 30-day and 365-day SOPR views based on your trading preferences.
  
• Dynamic Label: A floating label displays the current SOPR value in real-time, along with the selected SOPR metric for easy monitoring.
  
• Background Highlights: Visual cues for bullish and bearish conditions simplify chart interpretation.
  

Real-Time Alerts

• Bullish Alerts: Triggered when the selected SOPR crosses above 1.
  
• Bearish Alerts: Triggered when the selected SOPR crosses below 1.
  

Clean Visualization

• The indicator includes a horizontal reference line and clear color schemes for easy trend identification.
  

The SOPR Indicator is an essential tool for traders and analysts seeking to understand Bitcoin market sentiment and profitability trends. Whether used for short-term trades or long-term market analysis, this script provides actionable insights to refine your decision-making process.

-Jeffrey