Long-term Bitcoin holders dump as BTC plunges below $17,000

[ad_1]

On-chain data shows that long-term Bitcoin holders are dumping their coins as BTC drops below the $17,000 level.

Bitcoin Long-Term Holder SOPR Climbs Today

As one analyst pointed out in a post on CryptoQuant, some long-term BTC holders appear to have taken profits over the past day. The relevant indicator here is the “Spent Output Profit Ratio”, which tells us whether Bitcoin investors as a whole are selling their coins at a profit or a loss right now.

When this metric has a value greater than 1, it means that the average holder has recently moved their coins with some profit. On the other hand, values ​​below the threshold suggest that the overall market has made some loss. Naturally, a SOPR of exactly 1 implies that investors are just breaking even with their sale.

The “long-term holder” (LTH) group is a Bitcoin cohort that includes all investors who have held their coins for at least 155 days, without having moved or sold them from a single address. Here is a chart that shows the Bitcoin SOPR trend specifically for these LTHs over the past 15 days:

Looks like the metric’s EMA16 value has skyrocketed in the past few hours | Source: CryptoQuant

As seen in the chart above, Bitcoin LTH SOPR (EMA16) has seen a strong spike above 1 over the past day. This means that these holders reaped profits today. Statistically, LTHs are the least likely investors to sell at any time, so any dumping by them can have noticeable consequences in the BTC market.

From the chart, it is evident that when the indicator last experienced such a significant rise in its value, the price of the crypto plunged soon after. Interestingly, the latest spike only came after BTC dipped below $17,000. Usually these holders sell for profit during rallies, but here the dumping came after the bullish momentum had already passed.

This could be a sign that with all the FUD circulating in the market right now, these so-called diamond hands have also broken down and are feeling bearish about Bitcoin’s outlook at the moment. Such a trend is likely to be negative for the price and could drive the crypto lower even further.

BTC price

The price of the coin seems to have fallen in recent days | Source: BTCUSD on TradingView

As of this writing, the price of Bitcoin is hovering around $16.7,000, down 2% in the past week. The chart above displays the trend of the crypto’s value over the past five days.

[ad_2]