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On-chain data shows that Bitcoin’s long-term 30-day SOPR holder has not yet hit historic bottoms during the current cycle.
Bitcoin 30-Day Long-Term Holder SOPR Recently Dropped
As noted by an analyst in a CryptoQuant afterthe long-term holders have not yet reached their maximum pressure point.
the “Issued output earnings ratio” (or SOPR for short) is an indicator that tells us whether the average Bitcoin investor is currently selling at a profit or at a loss.
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 with values below the threshold suggests that investors as a whole are currently moving coins at a loss.
“Long-term holders(LTHs) are a cohort of Bitcoin investors who hold their coins for at least 155 days before selling or moving them.
Here is a chart showing the trend in the 30-day moving average BTC SOPR over the past few years, specific to 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 reached a specific level around the price floor in each of the previous two cycles.
These touches of the loss region level didn’t exactly coincide with the cycle lows, but they were still pretty close, making them good buying opportunities for the crypto.
In recent months, as the bear took over, the indicator’s value has fallen below the 1 mark, implying that the LTHs have recently sold at a loss.
While the stat has fallen deep into the red zone at this point, it is still not at the level where historical cycles have bottomed out.
Although, as the chart below shows, the DPO (an indicator popularly used for finding cycle tops and bottoms of any amount) of the LTH SOPR has recently begun to resurface.
In recent bear markets, the LTH SOPR hit its lowest level not too long after the DPO reversed the trend in this way. Now if a similar pattern also follows, it won’t be too long before long-term loss sales reach their maximum point.
BTC price
At the moment of writing, The price of Bitcoin is floating around $19.2k, 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
