On-chain data shows that long-term Bitcoin owner SOPR has recently noticed booms, indicating that this group is still selling.
Long-term Bitcoin holder SOPR price soared when price crossed $30K
As pointed out by CryptoQuant mailSelling pressure in the market remains high as long-term contract holders are also looking to sell.
The “Profit ratio of the output spent“It is an indicator that tells us whether the overall market is selling bitcoin at a profit or loss at the moment.
The scale works by checking the chain history of each coin sold to see what price it last moved at. Then it divides the current price (ie the selling price) with the last price.
When the value of this ratio is greater than one, it means that the investors are, on average, selling at a profit at the moment.
On the other hand, index values less than one indicate that the Bitcoin market as a whole is currently losing ground.
A group of BTC investors arelong-term pregnant(LTH), who hold their coins for at least 155 days before selling.
Related reading | Bitcoin Bearish Signal: Whales Step Up Dumping
“LTH SOPR” tells us about the profit or loss of this particular group. Below is a graph showing the trend in this indicator (EMA 144) over the past month:
It seems like the value of the metric has observed some spikes recently | Source: CryptoQuant
As you can see in the chart above, the Bitcoin long-term holder SOPR (EMA 144) has seen a boom in the past few days.
One took place on May 13, while the other took place on May 18. During those two instances, the price crossed $30,000 a short while ago.
Related reading | Funding Rates Drop to Annual Low After Bitcoin Drops Below $29,000
This means that LTHs have been feeling pressure in the current market to make their profits once the price reaches over $30,000.
Long-term bitcoin owners are usually the group least likely to sell. Therefore, selling pressure from this group could be bearish relative to the cryptocurrency price.
At the time of writing this report, Bitcoin price It is floating around $29.4K, up 3% in the past seven days. Over the past month, the cryptocurrency has lost 28% of its value.
The chart below shows the currency price trend over the past five days.
Looks like the price of the crypto has seen some decline over the past two days | Source: BTCUSD on TradingView
Over the past week, Bitcoin has mostly consolidated around the $30K mark, failing to gain any ground above the mark. As long as the sale continues at the level, the crypto will not be able to make any real recovery.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com