BTC may be shifting from a downcycle to an upcycle: analyst

Crypto analyst Crypto Dan said Bitcoin may be transitioning from a downcycle to an upcycle as the short-term holder spent output profit ratio, or SOPR, ended an 11-month bearish trend and rebounded sharply. Crypto Dan said BTC began falling from $120,000 in October 2025, after which investors spent roughly 11 months selling mainly at a loss or near break-even. BTC then fell to $58,000 in July, about half its peak level, and that area may have marked a potential bottom, Crypto Dan said. Despite profit-taking during the recent sharp rally, Bitcoin has absorbed the selling and remained resilient, a pattern Crypto Dan said differs clearly from the previous 11 months.