- Very Basically SOPR (Spent Output Profit Ratio) measures the price bought versus price sold. ( but it's more complex than that )
- Negative SOPR typically means people are selling for a loss. ( red dotted Lines columns )
- Positive SOPR typically means people are selling for a win. ( Blue dotted Lines colums )
- So what we can notice and deduct from this graph ?
- Simply that we are not perfect.
- The Fear and The Greed.
- We scare when the price goes up too much.
- We fear when the price goes down too much.
- Most of the time we sell to early.
- Most of the time we sell when it's time to buy.
"Human being is the fact to be imperfect anyway"
Happy Tr4Ding !