According to on-chain data, the Bitcoin long-term holder SOPR experienced recent spikes. It is possible that this group continues to sell.
The SOPR of Bitcoin’s Long-Term Holder was Spiked Up when the Price Exceeded $30k
CryptoQuant’s post pointed out that selling pressure is high in the market as long-term owners are looking to sell.
The “spent output profit ratio” is an indicator that tells us whether the overall market is selling Bitcoin at a profit or loss right now.
It works by looking at the history on each coin sold and determining its most recent price. This then divides the current (or selling) price with the last price.
Investors are selling on average at a profit when this ratio exceeds one.
However, if the value of the indicator is less than 1, it means that the entire Bitcoin market is experiencing loss.
A cohort of BTC investors is the “long-term holder” (LTH) group, who hold their coins for at least 155 days before selling.
Bitcoin Bearish Signal: Whales Ramp Up Dumping| Bitcoin Bearish Signal: Whales Ramp Up Dumping
The “LTH SOPR” tells us about profit or loss realization from specifically this group. Below is a chart showing the monthly trend of this indicator (EMA 144)
Source: CryptoQuant| Source: CryptoQuant
You can see that Bitcoin’s long-term holder, SOPR (EMA 144) has experienced a few spikes within the last couple days.
Both took place in May on the 13th and the other on the 18th. Both instances saw the price rise to $30k within a short time.
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LTHs feel pressured in this market to see their gains as soon the price rises above $30k.
The most likely to sell is the Bitcoin long-term holder. So, selling pressure from this group can prove to be bearish for the crypto’s price.
BTC price
At the time of writing, Bitcoin’s price floats around $29.4k, up 3% in the last seven days. The crypto’s value has fallen 28% over the last month.
Below chart displays the trends in the value of the coin during the past 5 days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Bitcoin’s price has remained steady at $30k for the last week. It failed to make any gains above that mark. As long as selling at the level continues, the crypto won’t be able to make any real recovery.
Unsplash.com featured image, Charts from TradingView.com and CryptoQuant.com charts