Indicator Overview

The SOPR Heatmap visually represents the Spent Output Profit Ratio (SOPR) directly onto the asset's logarithmic price chart. The SOPR measures the ratio of the sale price to the acquisition cost for all coins moved on-chain.

The indicator is presented as a series of colour-coded points overlaid on the price path, where the colour intensity represents the level of aggregate realised profit (green/yellow) or realised loss (red/blue) by the market on that day. A neutral colour (grey/white) indicates a break-even day where realized profits equal realized losses (SOPR \approx 1.0). This unique view links the current price action to the daily profit-taking and loss-taking dynamics of all holders.

How To Use

This heatmap is best used for identifying trend reversals and market exhaustion based on sellers' behaviour. Clusters of deep red/blue coloured dots (SOPR < 1.0) often coincide with capitulation events or strong trend resistance, signaling periods where the market is realizing heavy losses. This suggests panic selling or the final flush of weak hands, often preceding major relief bounces or cyclical bottoms. Conversely, dense groupings of bright green/yellow coloured dots (SOPR > 1.0) typically mark parabolic run-ups and high momentum. This suggests maximum aggregate profit-taking pressure and alerts traders to potential local or major cycle peaks, as the incentive for selling profitable coins is at its highest.