![Spent Output Profit Ratio (SOPR) Z-Score | [DeV] chart preview](/_next/image?url=%2Fmedia%2Ffull%2F25161.png&w=3840&q=90&dpl=dpl_Jt27hmzh6tNsGuJ13vyBBWgv8XSW)
The SOPR Z-Score is an advanced on-chain metric that analyzes Bitcoin seller behavior by measuring the ratio of spent outputs relative to their original purchase price, normalized statistically.
Explore complementary indicator rolesHow it works
The SOPR Z-Score calculates the ratio between the current USD value of spent Bitcoin outputs and their original purchase value. It then normalizes this ratio using a Z-Score calculation across a specified lookback period, typically 150 days.
An exponential moving average is applied to smooth the raw data, reducing noise and highlighting sustained shifts in seller behavior. The indicator compares current SOPR values against historical mean and standard deviation, providing a statistically robust method to assess market sentiment
Why it may be useful
This indicator offers deep insights into market psychology by revealing aggregate seller behavior and potential market turning points. It helps traders understand whether sellers are realizing profits, breaking even, or selling at a loss.
The Z-Score normalization allows for more precise identification of extreme market conditions compared to raw SOPR. By quantifying seller sentiment, traders can anticipate potential trend reversals, assess market support and resistance levels, and make more informed trading decisions
When to explore it
The SOPR Z-Score is most effective during significant market transitions, such as potential trend reversals or extended bull/bear markets. It works best when combined with other on-chain and price-based metrics for comprehensive analysis.
Traders should pay close attention when the Z-Score approaches or crosses zero, signaling potential shifts in market sentiment. It is particularly useful for long-term strategic analysis, institutional-grade trend assessment, and identifying periods of market stress or potential accumulation
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
