Indicator Overview

The SOPR Momentum indicator measures Bitcoin’s overall profitability momentum by subtracting the yearly simple moving average (SMA) from the daily Spent Output Profit Ratio (SOPR), a metric that tracks whether coins moved on-chain are being sold at a profit (>1) or loss (<1). The resulting differential is displayed as a filled histogram on the primary axis, with green above zero (positive momentum, indicating rising realised profits across the network) and red below zero (negative momentum, signalling increasing realised losses), while Bitcoin price is overlaid on a secondary logarithmic axis in white for context. Optional moving average overlays on the momentum line provide additional smoothing.

How To Use

Positive and rising momentum (green bars expanding above zero) signals strengthening realised profitability across the entire holder base, often confirming mature bull markets, broad-based capital gains, and sustainable upward trends driven by confident spending. Negative and deepening momentum (red bars plunging below zero) reveals mounting realised losses and capitulation, historically marking major cycle bottoms and the strongest accumulation zones. Divergences are highly predictive: price rallying while momentum weakens (fading green or turning red) warns of distribution and impending corrections, whereas price weakness with improving momentum (red fading or crossing green) suggests resilient long-term demand and high-probability reversals. Traders monitor zero-line crosses for major regime shifts, extreme positives as caution signals, and deep negatives as generational buying opportunities, making SOPR Momentum one of the most reliable long-term cycle oscillators for timing tops, bottoms, and inflection points in Bitcoin’s multi-year price cycles. rising realised