The  Adjusted Spent Output Profit Ratio (aSOPR), a metric that indicates whether holders are selling at a profit or loss recorded a downward trajectory below the 1-level, which suggests investors are selling their positions at massive losses. 

According to CryptoSlate analysis, the aSOPR provided by Glassnode usually signals the transition to a bull market when investors realize high losses during the bear market. At this point, holders give up with current conditions and the capitulation deepens. Therefore ushering buy-the-dip opportunists, who are driving strong accumulation, despite the BTC market witnessing one of the largest capitulation events in 4 years. 

As depicted in the graph below, the trend in Bitcoin’s aSOPR shows a recent downward trajectory below 1.  The indicator’s value presently lies at a level last witnessed in 2018 when the bearish cycle reached its bottom.

(By Richard Adrian)