On-chain data shows that the 30-day Bitcoin holder SOPR has not yet reached its historic low during the current cycle.
SOPR, the long-term 30-day bitcoin holder, has recently tumbled
As pointed out by an analyst at CryptoQuant Mailthe long-term service holders have not yet reached their maximum pressure point.
The “Output Profit Ratio“(or SOPR for short) is an indicator that tells us whether the average bitcoin investor is selling at a profit or at a loss at the moment.
When the value of this metric is less than 1, it means that the market as a whole is currently making some amount of profit.
On the other hand, an index with values beyond the minimum indicates that investors as a whole are moving coins at a loss at the moment.
“long term carriers(LTHs) is a group of Bitcoin investors who hold their coins for at least 155 days before selling or transferring them.
Here is a chart showing the trend in the 30 day moving average BTC SOPR over the past several years specifically for 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, it appears that the 30-day MA Bitcoin LTH SOPR has reached a certain level around the price trough in each of the previous two sessions.
These touches of the level in the loss zone did not quite match the cycle lows, but they were still very close, making them a good buying opportunity for the cryptocurrency.
In recent months, with the bear in control, the value of the index has fallen below the 1 mark, which indicates that LTHs have been selling at a loss lately.
While the scale has fallen deep into the red by this point, it’s still not at the level where historical cycles have noticed their bottoms.
Although, as the chart at the bottom shows, the DPO (an indicator commonly used to find cycle tops and bottoms for any quantity) of LTH SOPR has been making a comeback lately.
In previous bear markets, LTH SOPR reached the lower level not long after the DPO reversed direction like this. If it follows a similar pattern now as well, it may not be long for the long-term holder’s loss sale to reach its maximum point.
At the time of writing this report, Bitcoin price It is floating around $19.2k, up 1% in 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