The on-chain data shows that Bitcoin’s 30-day long-term holder’s SOPR has yet to hit an all-time low in the current cycle.
Bitcoin’s 30-Day Long-Term Holder SOPR Has Decreased Recently
As one analyst pointed out in an article on CryptoQuant, long-term holders have yet to reach their maximum pressure point.
The “Spent Output Profit Ratio” (or SOPR for short) is an indicator that tells us whether the average Bitcoin investor is selling with a profit or a loss right now.
When the value of this metric is less than 1, it means that the overall market is currently making some profit.
On the other hand, the indicator having values above the threshold suggests that investors as a whole are moving coins at a loss at the moment.
“Long-Term Holders” (LTH) are a cohort of Bitcoin investors who hold their coins for at least 155 days before selling or moving them.
Here is a chart that shows the trend of the BTC SOPR 30-day moving average over the past few years specifically for these LTHs:
The 30-day MA value of the metric seems to have been going down in recent days | Source: CryptoQuant
As you can see in the chart above, the 30-day MA Bitcoin LTH SOPR appears to have hit a specific level around the price bottom in each of the previous two cycles.
These level touches in the loss region did not exactly coincide with cycle lows, but they were still quite close, making them good buying opportunities for the crypto.
Over the past few months, as the bear has gained the upper hand, the value of the indicator has fallen below the 1 mark, implying that LTH has been selling at a loss recently.
Although the metric has dropped deep into the red zone at this point, it is still not at the level where historical cycles have seen their lows.
However, as the chart below shows, the DPO (an indicator commonly used to find cycle highs and lows of any quantity) of the LTH SOPR has started to rally recently.
In past bear markets, the LTH SOPR bottomed out shortly after the DPO reversed the trend like this. If a similar trend follows now as well, it may not be too long before holders’ long-loss selling reaches its maximum point.
BTC price
At the time of writing, the price of Bitcoin is hovering around $19.2,000, up 1% in the past week.
Looks like BTC has been moving sideways again during the last few days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com
