Past trend of the Bitcoin long-term holder SOPR (EMA 30) may suggest that BTC holders may face more pain in the coming months.<\/p>\n
Bitcoin Long-Term Holder SOPR Has Dropped Below \u201cOne\u201d Recently<\/p>\n
As explained by an analyst in a CryptoQuant post, BTC investors may be in for a frustrating few months if history is anything to go by.<\/p>\n
The \u201cspent output profit ratio\u201d (or SOPR in short) is an indicator that tells us whether Bitcoin investors are selling at a profit or at a loss right now.<\/p>\n
The metric works by going through the transaction history of each coin being sold on the chain, to see what price it was last moved at.<\/p>\n
If the previous selling price of any coin was less than the current value of BTC, then the coin has just been sold for a profit.<\/p>\n
On the other hand, the past value being more than the latest price of the crypto would imply the coin has moved at a loss.<\/p>\n
When the value of the SOPR is greater than one, it means the overall Bitcoin market is selling at a profit right now.<\/p>\n
Related Reading |\u00a0Bitcoin Coinbase Premium Gap Approaches Zero, Selloff Ending?<\/p>\n
On the other hand, values of the indicator less than one imply investors as a whole are realizing some loss at the moment.<\/p>\n
Now, the \u201clong-term holder\u201d (LTH) group includes any Bitcoin investor who has been holding their coins since at least 155 days ago without moving or selling.<\/p>\n
The below chart shows the trend in the SOPR over the history of the crypto specifically for these LTHs.<\/p>\n\n
Looks like the 30-day exponential-MA value of the indicator has gone down recently | Source: CryptoQuant<\/p>\n
In the above graph, the quant has highlighted all the regions of relevant trend for the Bitcoin long-term holder SOPR.<\/p>\n
It seems like during past bottoms, the indicator\u2019s EMA-30 value has gone below one and trended sideways there for a while (except for the COVID-19 crash, where the metric didn\u2019t stay in the zone for too long).<\/p>\n
Related Reading |\u00a0Bitcoin Whale Presence On Derivatives Still High, More Volatility Ahead?<\/p>\n
Recently, the LTH SOPR\u2019s value has once again gone below one, suggesting long-term holders are realizing losses right now.<\/p>\n
The analyst notes that while such capitulation events have historically lead to bottom formations, it may still be a while, even months, before a low is actually found.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $21.4k, up 11% in the past week. Here is a chart that shows the trend in the value of the coin over the last five days:<\/p>\n\n
The price of the coin seems to have surged up over the last few days | Source: BTCUSD on TradingView
\nFeatured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
Past trend of the Bitcoin long-term holder SOPR (EMA 30) may suggest that BTC holders may face more pain in the coming months.<\/p>\n
Bitcoin Long-Term Holder SOPR Has Dropped Below \u201cOne\u201d Recently<\/p>\n
As explained by an analyst in a CryptoQuant post, BTC investors may be in for a frustrating few months if history is anything to go by.<\/p>\n
The \u201cspent output profit ratio\u201d (or SOPR in short) is an indicator that tells us whether Bitcoin investors are selling at a profit or at a loss right now.<\/p>\n
The metric works by going through the transaction history of each coin being sold on the chain, to see what price it was last moved at.<\/p>\n
If the previous selling price of any coin was less than the current value of BTC, then the coin has just been sold for a profit.<\/p>\n
On the other hand, the past value being more than the latest price of the crypto would imply the coin has moved at a loss.<\/p>\n
When the value of the SOPR is greater than one, it means the overall Bitcoin market is selling at a profit right now.<\/p>\n
Related Reading |\u00a0Bitcoin Coinbase Premium Gap Approaches Zero, Selloff Ending?<\/p>\n
On the other hand, values of the indicator less than one imply investors as a whole are realizing some loss at the moment.<\/p>\n
Now, the \u201clong-term holder\u201d (LTH) group includes any Bitcoin investor who has been holding their coins since at least 155 days ago without moving or selling.<\/p>\n
The below chart shows the trend in the SOPR over the history of the crypto specifically for these LTHs.<\/p>\n
Looks like the 30-day exponential-MA value of the indicator has gone down recently | Source: CryptoQuant<\/p>\n
In the above graph, the quant has highlighted all the regions of relevant trend for the Bitcoin long-term holder SOPR.<\/p>\n
It seems like during past bottoms, the indicator\u2019s EMA-30 value has gone below one and trended sideways there for a while (except for the COVID-19 crash, where the metric didn\u2019t stay in the zone for too long).<\/p>\n
Related Reading |\u00a0Bitcoin Whale Presence On Derivatives Still High, More Volatility Ahead?<\/p>\n
Recently, the LTH SOPR\u2019s value has once again gone below one, suggesting long-term holders are realizing losses right now.<\/p>\n
The analyst notes that while such capitulation events have historically lead to bottom formations, it may still be a while, even months, before a low is actually found.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $21.4k, up 11% in the past week. Here is a chart that shows the trend in the value of the coin over the last five days:<\/p>\n
The price of the coin seems to have surged up over the last few days | Source: BTCUSD on TradingView
\nFeatured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-2040","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/2040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=2040"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/2040\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=2040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=2040"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=2040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}