Fun

Bitcoin’s Key SOPR Metric Holds Steady: Are Long-Term Holders Eyeing Higher Prices?

News Feed - 2024-12-24 09:12:09

Este artículo también está disponible en español.


Bitcoin has continued to see declining performance in recent days with on-chain metrics offering valuable insights into market behavior.


Among these metrics, the Spent Output Profit Ratio (SOPR) for long-term holders has particularly emerged as a critical tool for assessing investor sentiment and market resilience.


Long-term holders, defined as investors holding Bitcoin for over 155 days, are often viewed as a stabilizing force in the market. Their selling patterns can significantly influence price trends, making SOPR an indicator worth watching. Related Reading Bitcoin Market Leverage and Coinbase Premium: What Recent Data Reveals 2 days ago Long-Term Holder Trends And Market Sentiment


Recent analysis from a CryptoQuant analyst known as Cryptoavails highlights that Bitcoin’s long-term holder SOPR metric continues to exhibit notable patterns as Bitcoin’s price trends upward.


Historically, SOPR values above 1 indicate that long-term holders are selling at a profit, while values below 1 suggest they are offloading their holdings at a loss.


This behavior reflects broader market confidence or capitulation during periods of price decline. Currently, the SOPR metric remains consistently above 1, signaling that long-term holders are selling profitably without adding significant downward pressure on Bitcoin’s price.


The analysis from Cryptoavails tracks key phases in the Bitcoin market over the past two years, highlighting significant shifts in SOPR values. For instance, in early 2022, the SOPR metric showed high volatility with frequent spikes, suggesting intense profit-taking activity by long-term holders.


Amid these sales, Bitcoin’s price experienced a downward trend, reflecting persistent selling pressure during that period. This trend gradually shifted in late 2022 and early 2023 when the SOPR metric mostly remained below 1, indicating that long-term holders were selling at a loss as the market sought to find stability.


By mid-2023, the SOPR began trending upwards, signaling renewed confidence among long-term investors. The metric consistently moved closer to or above the critical level of 1, suggesting that long-term holders were once again selling at a profit while market confidence began to recover.


This upward trend has remained intact into 2024, supported by Bitcoin’s rising price levels. Importantly, there have been no significant sell-offs by long-term holders, reinforcing the broader market’s stability, according to the crypto analyst. SOPR As A Forward Indicator For Market Growth


Overall, Cryptoavails mentioned that the current state of Bitcoin’s SOPR suggests a healthy market dynamic, with long-term holders contributing to a stable price structure. Despite periodic corrections, the sustained presence of SOPR above 1 indicates that selling pressure remains controlled. Related Reading What’s The Worst Case Scenario For Bitcoin Right Now? Analyst Explains 15 hours ago


The analyst also pointed out that this behavior reflects market maturity, where long-term investors are not rushing to offload their holdings despiteBitcoin’s price appreciation.


Regardless, Bitcoin has continued to consistently decrease in price since its sharp drop below $100,000 last week. At the time of writing, Bitcoin trades at a price of $93,991 down by 1.6% in the past 24 hours. BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT onTradingView.com


Featured image created with DALL-E, Chart from TradingView

News Feed

Bitcoin ETF activity to remain robust until the halving: Santiment
Martin Young3 hours agoBitcoin ETF activity to remain robust until the halving: SantimentIt is a “likely foregone conclusion” that high Bitcoin ETF activity will continue leading up to the halving, said Santiment.179
Binance Developing Crypto Exchange in Indonesia
Binance Developing Crypto Exchange in Indonesia Binance has formed a joint venture with a consortium led by Telkom Indonesia’s $830-million venture capital arm. Binance aims
XRP Surges Past $3.2 As Whale Activity Spikes 81%
Este artículo también está disponible en español. XRP has enjoyed a rally beyond the $3.2 mark as on-chain data shows the cryptocurrency is among the altcoins witnessing
Alice Ivey12 hours agoHow to use chatbots for virtual assistanceLearn the key strategies for leveraging chatbots in virtual assistance, from setting goals to designing intuitive interfaces and continuously enhancing thei
Binance Labs shifts investment focus to Bitcoin DeFi
Zoltan Vardai11 hours agoBinance Labs shifts investment focus to Bitcoin DeFiBTCFi protocols are gaining traction ahead of the anticipated Bitcoin halving event on April 19. Can they match Ethereum-native DeFi in the fut
Crypto Market Enters Step 2 Of Benjamin Cowen’s Guide For 2025, What’s Next On The List?
Este artículo también está disponible en español. According to a recent analysis by Benjamin Cowen, CEO and Founder of ITC Crypto, the crypto market has entered “Step 2
Study: Switzerland Has ‘the Most Profitable Bitcoin Traders’ Worldwide, While France ‘Is the Best Bitcoin Trading Nation’
Study: Switzerland Has "the Most Profitable Bitcoin Traders" Worldwide, While France "Is the Best Bitcoin Trading Nation" According to a recent study published by the online invest
Spot Bitcoin ETFs record new ATH of $680M as BTC bull run gathers pace
Arijit Sarkar1 hour agoSpot Bitcoin ETFs record new ATH of $680M as BTC bull run gathers paceThe iShares Bitcoin Trust recorded the highest daily inflows on Feb. 28 at $612.1 million, supported by the Fidelity Wise Origi
Tom Blackstone4 hours agoUSDC will launch natively on Base network ‘next week’ — Jeremy AllaireCircle announced that a Base version of its USDC stablecoin would be available soon, eventually eliminating the need fo
The rise of DePINs: From noise pollution sensors to robo-cafes
Savannah Fortis12 hours agoThe rise of DePINs: From noise pollution sensors to robo-cafesDecentralize with Cointelegraph dives into the inner workings of DePINs and how they leverage blockchain to revolutionize real-worl
Crypto-Centric VC Fund Lures in Billionaire Investor Paul Tudor Jones and Rapper LL Cool J
Crypto-Centric VC Fund Lures in Billionaire Investor Paul Tudor Jones and Rapper LL Cool J This week the former Digital Currency Group (DCG) Vice President of In
BingX exchange openly supports Iranian users, defying sanctions
Christopher Roark3 hours agoBingX exchange openly supports Iranian users, defying sanctionsA Telegram admin for BingX claims that the exchange “has no problem with Iranian users, and it is even possible to authenticate