On-chain data shows that SOPR, a 30-day long-term holder of Bitcoin, has yet to hit a historic low during the current cycle.
Bitcoin 30-day long-term holder SOPR drops recently
As analysts pointed out in the CryptoQuant post, long-term holders have yet to reach their biggest pressure point.
The “Spent Output Profit Ratio” (or SOPR for short) is a metric that shows whether the average Bitcoin investor is currently making a profit or losing money.
A value of less than 1 for this metric means that the overall market is currently realizing some profit.
On the other hand, indicators with values greater than the threshold suggest that investors are generally losing money at the moment.
“Long-term holders” (LTH) are a cohort of Bitcoin investors who hold Bitcoin for at least 155 days before selling or transferring it.
Below 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 from the graph above, the 30-day MA Bitcoin LTH SOPR seems to have reached a certain level near the bottom of the price in each of the previous two cycles.
These level touches in the loss area didn’t exactly line up with the cycle lows, but they were still very close, making it a good buying opportunity for the crypto.
As the bear market has continued over the past few months, the indicator’s value is below the 1 mark, indicating that LTH has recently been losing money.
At this point the indicator has fallen deep into the red zone, but has yet to reach the level where past cycles have bottomed out.
However, as shown at the bottom of the chart, the LTH SOPR’s DPO (an indicator commonly used to find the tops and bottoms of cycles of any amount) has recently started to recover.
In past bear markets, the LTH SOPR bottomed out shortly after the DPO reversed the trend like this. If a similar pattern continues today, it may not be too long before long-term holders reach a point of loss selling.
At the time of writing, Bitcoin’s price is hovering around $19.2 thousand, up 1% over 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
Bitcoin’s 30-day long-term holder SOPR has yet to hit rock bottom
Source link Bitcoin’s 30-day long-term holder SOPR has yet to hit rock bottom