On-chain data shows Bitcoin long-term holder capitulation has deepened recently, but has not entered into the historical bottom zone yet. Bitcoin Long-Term Holder SOPR Continues To Observe Deep Values Below ‘1’ As explained by an analyst in a CryptoQuant post, 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. The metric works by checking the on-chain history of each coin being sold to see what price it was last moved at. If this last selling value of any coin was less than the current BTC price, then that coin has now been sold at a profit. Related Reading | Can This Bitcoin Ratio Have Hints For A Bottom? On the other hand, the previous price being more than the one right now would imply the coin has realized some loss. When the SOPR is greater than one, it means the overall Bitcoin market is harvesting some profits at the moment. On the contrary, a value less than that implies loss realization is going on among BTC investors right now. “Long-term holder” group includes all BTC investors that held their coins for at least 155 days before selling or moving them. The below chart shows the trend in the 14-day MA SOPR specifically for these LTHs: The value of the metric seems to have been going down recently | Source:...
