Bitcoin Selling Pressure Continues as Long-Term SOPR Holder Soars
On-chain data shows that Bitcoin’s long-term SOPR holder has recently observed spikes, suggesting that this cohort is still continuing to sell.
Bitcoin long-term holder SOPR then surged $30k in price. exceeded
As noted by a CryptoQuant afterthe selling pressure in the market seems to still be high as long term holders also want to sell.
The “spent output profit ratio” is an indicator that tells us whether the overall market is currently selling Bitcoin at a profit or loss.
The stat works by checking the on-chain history of each coin sold to see what price it last moved at. Then the current price (that is, the selling price) is divided by the last price.
When the value of this ratio is greater than one, it means that investors are currently selling at a profit on average.
On the other hand, values of the indicator less than one imply that the Bitcoin market as a whole is currently making a loss.
One cohort of BTC investors is the “long-term holder” (LTH) group, who hold their coins for at least 155 days before they are sold.
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The “LTH SOPR” tells us about profit or loss realization of this group specifically. Here is a chart showing the trend in this indicator (EMA 144) over the past month:
It seems that the value of the statistic has recently seen some spikes | Source: CryptoQuant
As you can see in the chart above, Bitcoin’s long-term holder SOPR (EMA 144) had a number of spikes in the past few days.
One took place on May 13, the other on May 18. In both cases, the price had crossed $30k shortly before that.
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This means that LTHs in the current market are under pressure to realize their gains once the price moves above $30k.
Usually, long-term holders of Bitcoin are the least likely cohort to sell. So selling pressure from this group may turn out to be bearish for the price of the crypto.
At the time of writing, Bitcoin’s price is hovering around $29.4k, up 3% over the past seven days. In the past month, the crypto lost 28% in value.
The chart below shows the trend in the price of the coin over the past five days.
It seems that the price of the crypto has fallen a bit in the last two days | Source: BTCUSD on TradingView
Over the past week, Bitcoin has largely consolidated around $30k, without gaining any ground above the line. As long as sales continue at the level, the crypto will not be able to make a real recovery.
Featured image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com