Analysis: Bitcoin's on-chain profit structure is approaching the early stages of a bull market, yet downside risks remain.

BlockBeats News, September 9, CryptoQuant data shows that Bitcoin's Spent Output Profit Ratio (SOPR) has remained above the breakeven line of 1 for three consecutive weeks since August 19, marking the longest streak since 2026, with the current reading at approximately 1.002. An SOPR above 1 indicates that BTC transferred on-chain is overall in a profitable state.

On-chain analytics platform Checkonchain stated that in bear markets, price rebounds into profitable territory are typically met with selling pressure, while in bull markets, brief dips below the breakeven line often create buying opportunities. The current structure is beginning to approach the early recovery phase of a bull market.

However, ARK Invest portfolio manager David Puell believes that Bitcoin prices still face downside risks. The SOPR needs to remain above 1 for a longer period, while BTC prices must form consecutive higher highs and higher lows to provide more substantial evidence that the bear market has ended.