Bitcoin Long-Term Holder SOPR Continues To Observe Deep Values Below ‘1’
As explained by an analyst in a CryptoQuant , BTC long-term holders have been realizing losses in recent weeks.The “spent output profit ratio” (or SOPR in short) is an indicator that tells us whether Bitcoin investors are currently selling at a profit or at a loss.
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On the other hand, the previous price being more than the one right now would imply the coin has realized some loss.The value of the metric seems to have been going down recently | Source:As you can see in the above graph, the quant has marked all the relevant points of trend for the 14-day MA Bitcoin long-term holder SOPR. It seems like the major bottoms in the history of the crypto were formed whenever the indicator’s value sank to a value of around 0.48 (denoted by the green line in the chart).
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This kind of value occurs when LTHs go into deep capitulation. Since this is the BTC cohort least likely to sell at any point, large loss realization from them can signal that the bear bottom is coming near.
Currently, the indicator is also below 1, but it still has a value of about 0.62, a bit higher than the historical bottom zone. This would suggest that while Bitcoin may be heading towards a bottom, it’s not quite there yet.BTC Price
At the time of writing, Bitcoin’s price floats around $19.4k, down 9% in the past week. The below chart shows the trend in the value of the crypto over the last five days.
Looks like the price of the coin has been moving sideways over the last few days | Source:
Featured image from Brent Jones on Unsplash.com, charts from TradingView.com, CryptoQuant.com