Bitcoin 30-day long-term holder SOPR has yet to bottom
On-chain data shows that the Bitcoin 30-day long-term holder SOPR has yet to reach its historic low during the current cycle.
Bitcoin 30-day long-term holder SOPR has declined recently
As pointed out by an analyst in a CryptoQuant post, the long-term owners have not reached their maximum pressure point yet.
“Spent Output Profit Ratio” (or SOPR for short) is an indicator that tells us whether the average Bitcoin investor is selling at a profit or at a loss right now.
When the value of this metric is less than 1, it means that the overall market is realizing some profit at the moment.
On the other hand, the indicator that has values above the threshold suggests that investors as a whole are moving coins at a loss at the moment.
“Long-Term Owners” (LTH) are a group of Bitcoin investors who hold their coins for at least 155 days before selling or moving them.
Here is a chart showing the trend of the 30-day moving average BTC SOPR 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 graph 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 touches of the level in the loss region did not exactly coincide with the cycle lows, but they were still quite close, making them good buying opportunities for the crypto.
In recent months, as the bears have taken over, the indicator’s value has fallen below the 1 mark, suggesting that the LTHs have been selling at a loss recently.
While the metric has fallen deep into the red zone at this point, it is still not at the level where the historical cycles observed the bottom.
Although, as the bottom chart shows, the DPO (an indicator popularly used to find cycle tops and bottoms in any amount) of the LTH SOPR has started to turn up again recently.
In previous bear markets, LTH SOPR bottomed out not too long after DPO reversed the trend like this. If a similar pattern follows now as well, it may not be too long before long-term short-term selling reaches its maximum.
BTC price
At the time of writing, Bitcoin’s price is hovering around $19.2k, up 1% in the last 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
