Bitcoin has declined below $21k during the past day as on-chain data shows signs of long-term holders harvesting profits. Bitcoin Long-Term Holder SOPR Has Spiked Up In Recent Days As pointed out by an analyst in a CryptoQuant post, profit-taking from long-term holders has previously been followed by local tops in the price of the crypto. The relevant indicator here is the “Spent Output Profit Ratio,” which tells us whether the average Bitcoin investor is selling at a profit or at a loss right now. When the value of this metric is greater than 1, it means the holders as a whole are realizing some amount of profits right now. On the other hand, SOPR values below the threshold suggest the overall market is selling at a loss at the moment. Related Reading: These Events Will Be Key For Bitcoin And Crypto This Week Naturally, values of the indicator exactly equal to one imply BTC investors are just breaking even on their selling. Now, there is a Bitcoin cohort called the “long-term holders” (LTHs), which include all investors who have been holding onto their coins since at least 155 days ago, without having moved or sold them. Here is a chart that shows the trend in the SOPR specifically for this BTC holder group over the last couple of weeks: Looks like the EMA 16 value of the metric has been quite high recently | Source: CryptoQuant As you can see in the above graph, the LTH SOPR has sharply spiked up...
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