An on-chain indicator called SOPR shows if the market is profiting or losing money.The fact that SOPR rebounds at one line and does not fall below it is one sign of bullish trends.
This was obvious during the bull market of 2016–2018, when the indicator bounced four times after breaking out at the one line.
Following that, it entered a phase where SOPR could move freely above and below one for about a year. This is a sign of an undetermined trend. It probably means that the bullish trend has ended when it occurs after such a long bullish rally.
The capitulation in December 2018 was the end of this period, when the SOPR dropped to 0.86. After that, BTC started a new bullish trend.
According to the SOPR, the current bull run was way shorter because there were just two bounces at the one line.
It has been freely moving over and below one since May 2021, much like it did in 2018. But nothing similar to a December 2018 capitulation has occurred. As a result, there's a chance one will finally occur before the bottom.
Ratio RHODL
The ratio between the 1-week and the 1-2 year HODL Wave bands is used to create the RHODL ratio. Values over 50,000 suggest that a significant percentage of the BTC supply is held by short-term holders.
In the past, these values have coincided market peaks, as was the case at the peaks in 2013 and 2017.
That isn't the case right now because the long-term HODL waves are almost at an all-time high.
Currently, the RHODL ratio is 617, which is higher above the 300 ratio that is regarded as oversold. Within this percentage, previous bottoms have been reached.
This shows that a capitulation event is still possible before a bottom, just like the SOPR chart does.
This has not always been the case, though, as the bottom was hit in March 2020 at a ratio of 1,100.
