Bitcoin Market Profitability Sees ‘Complete Reset’

Bitcoin Market Profitability Sees ‘Complete Reset’ — What Lies Ahead for Its Price?

Following a recent wave of bearish sentiment on Friday, December 5, Bitcoin has struggled to maintain its footing beneath the significant psychological mark of $90,000 throughout the weekend. However, recent on-chain data points to the possibility that this leading cryptocurrency may be gearing up for its next upward movement.

Key Takeaways

Bitcoin’s price is currently below $90,000, facing bearish market conditions.
The Spent Output Profit Ratio (SOPR) has dropped to its lowest level since early 2024, suggesting a potential market bottom.
Long-term holders are showing signs of reduced selling pressure, indicating a potential recovery.
Current price data shows Bitcoin at approximately $89,500, down nearly 2% over the past week.

Bitcoin price

Current Bitcoin Profitability Status

On December 6, CryptoOnchain posted on the X platform, suggesting that Bitcoin might be forming a local price bottom. The analyst pointed out that the selling pressure—particularly from long-term holders—appears to be easing.

This observation highlights the importance of the Spent Output Profit Ratio (SOPR), a metric that assesses the profitability of spent outputs for both long-term and short-term holders. This on-chain indicator helps determine whether investors are selling their Bitcoin at a profit or a loss.

When the SOPR is above 1, it signals that investors are generally selling at a profit. Conversely, a value below 1 indicates that participants are selling their assets at a loss.

Bitcoin Source: @CryptoOnchain on X

According to CryptoOnchain, Bitcoin's SOPR has dropped to 1.35, the lowest value since early 2024. This decline suggests a complete reset in market profitability, especially as Bitcoin's price dips below the $90,000 level.

CryptoOnchain also noted that the significant profit-taking phase among long-term holders is nearing an end, as bearish sentiment seems to be waning. Historically, such a low SOPR reading indicates that a local bottom for Bitcoin's price may be in the making, particularly as the market relaxes.

Ultimately, this analysis indicates that if a price rebound occurs now, it could pave the way for Bitcoin's next healthy upswing.

Overview of Bitcoin's Price

As of this report, Bitcoin's price hovers around $89,500, showing minimal change over the past 24 hours. Data from CoinGecko indicates that the cryptocurrency is down nearly 2% within the last week.

Bitcoin's price is down approximately 5% year-to-date and about 30% from its all-time high of $126,080. Without a significant shift in market momentum, it appears that the market leader may conclude 2025 in the negative territory.

Bitcoin The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView