Just took a look at the on-chain data and noticed something interesting—the Bitcoin SOPR indicator has dropped to 1.35, its lowest point this year.

What does this number mean? Basically, it indicates that most of the profit-taking has already happened, and now there are fewer and fewer people in the market willing to sell at a loss. Makes sense—those eager to cash out at every small uptick have already exited in the previous rounds of volatility.

Historically, every time the SOPR drops to this level, it often signals a local bottom. It doesn’t mean prices will skyrocket immediately, but after the selling pressure fades, prices tend to stabilize. Once a new catalyst comes in, there’s a higher chance of a market turnaround. More importantly, when BTC stabilizes, altcoins have room to perform, and overall market sentiment can start to recover.

Of course, even if I’m optimistic, I still have to be cautious in my approach. You know how crypto moves—what looks like a bottom today can see a sudden drop tomorrow.

My idea is to test the waters with a small position, like allocating 20% of my funds to mainstream coins to get a foothold. Don’t rush in with everything—wait for a confirmed breakout above key resistance levels before adding more. Managing risk is always more important than chasing gains.

In short, there might be opportunities brewing, but you need to have ammo ready and keep a clear mind. What do you all think about this data signal?