Blockchain data reveals that long-term HODLer bears are weakening, but BTC's market value remains strong
Data from blockchain reveal that long-term HODLer bears are weakening, but $$BTC_MV
The recent drop in the price of Bitcoin has led to a substantial increase in the number of people who have lost faith in it as an investment, but there is no indication that this trend has reached its nadir.
Bitcoin Long-Term Holder SOPR Continues To Monitor Deep Values Below ‘1’
An analyst in a CryptoQuant post explains that long-term holders of BTC have been experiencing losses recently.
The SOPR 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.
The coin's value decreasing would be demonstrated by the previous price exceeding the present one.
When the SOPR is greater than one, it means that the overall Bitcoin market is making some profits at the moment. In contrast, a value less than that implies loss realization is occurring among BTC investors.
The following chart shows the trend in the 14-day MA SOPR for LTHs: long-term holders are all BTC investors that held their coins for at least 155 days before selling or moving them.
The quant has marked all the relevant points of trend for the 14-day MA Bitcoin long-term holder SOPR. As you can see in the above graph,
The lowest points in the history of cryptocurrency have been marked by the indicator's dropping to a value of around 0.48 (as shown by the green line on the chart).
LTHs in deep capitulation can create this kind of value. The BTC cohort is the least likely to sell at any point, so large loss realization from them can signal that the bear bottom is approaching.
As of now, the indicator is also below 1, but it still has a value of about 0.62, which is a bit higher than the historical bottom zone. This indicates that while Bitcoin may be heading towards a bottom, it's not quite there yet.
The price of BTC has fluctuated over the past year.
At the time of writing, Bitcoin's price is around $19.4k, down 9% in the past week. The following chart shows how the value of the crypto has changed over the last five days: