Bitcoin's price pressure is testing even the most steadfast 'diamond hands.' CryptoQuant analyst nino reports that the Long-Term Holder SOPR (LTH-SOPR) has slipped below the 1.0 threshold, marking a shift in market dynamics. The indicator tracks investors who have held BTC for more than 155 days.
LTH-SOPR Below 1: Loss Realization Rises
Nino explains that a reading above 1.0 normally signals profit-taking by long-term holders. With the index now below 1.0, more seasoned participants are closing positions at prices lower than their entry cost. This behavior historically aligns with a 'capitulation' phase, where even patient investors capitulate under sustained downside pressure.
On-chain data shows realized losses from the LTH cohort expanding, while short-term holders also face underwater positions. Nino notes that similar indicator levels have coincided with local bottoms in past cycles, but whether the selling wave is exhausted remains uncertain.
Market sentiment indexes have dropped, while trading volume stays moderate. Some traders are stepping aside; others eye bargain entries. Bitcoin continues to test support near the $60,000 zone, with liquidity tilting toward sellers.