- Bitcoin’s long-term holders have cashed in their gains, with the SOPR reaching another milestone.
- The profitability of short-term holders decreases and a downward trend in the price of Bitcoin may occur.
After months of sticking to their Bitcoin [BTC]long-term investors have finally been able to cash in on their gains. It’s been almost a year since they’ve had this chance. But as these seasoned traders take their profits, some are wondering if this could dampen Bitcoin’s steady climb. Is the market feeling the weight of their sell-off?
Read Bitcoin [BTC] Price Forecast 2023-24
Long-term Bitcoin holders support profit-taking
According to data from CryptoQuantThe Spent Output Profit Ratio (SOPR) for Bitcoin long-term holders has reached a new milestone. As of April 28, the stat was above 1 for the longest stretch in nearly a year. The streak started on April 18 when Bitcoin’s price was above $30,000 and has remained above $1 ever since. Before that, the SOPR fluctuated above one.
Source: CryptoQuant
Essentially, the SOPR measures the profit ratio for Bitcoin holders by comparing the current market value to the price at which the cryptocurrency last moved on-chain. When the SOPR is above 1, it indicates that the average profit for Bitcoin holders is positive, while a reading below 1 suggests that Bitcoin is being sold at a loss.
Given the recent spike in SOPR, long-term investors can take advantage of the opportunity to take profits, leading to increased selling pressure in the market. This could be one of the reasons why Bitcoin prices have struggled to maintain their upward momentum.
How profitable are Bitcoin holders in the long run?
According to data from Santiment, the 180-day market value to realized value (MVRV) ratio indicated that long-term Bitcoin holders were enjoying gains of more than 20% at the time of writing. The MVRV showed that this group of investors had been profitable since January, with a highest profitability of over 30% in March.
At the time of writing, the MVRV had fallen slightly, but remained above 29%.
Source: Sentiment
On the other hand, the 30-day MVRV paints a different picture, indicating a decline in profitability. At the time of writing, the 30-day MVRV was around 1.5%, a significant decrease compared to the longer-term MVRV. This suggests that short-term holders may be making less profit than their long-term counterparts.
Source: Sentiment
Given the longer-term current position of the MVRV, it is possible that a downward trend in the price of Bitcoin is occurring, which is likely to cause the MVRV to fall further. This trend may cause short-term holders to suffer further losses or lower profits.
How much are 1,10,100 BTC worth today?
The bullish momentum is slowing
At the time of writing, BTC was experiencing a second day of consecutive decline on a daily time frame. It was trading at around $29,200, down less than 1%.
Despite the recent decline, the overall trend was still bullish. However, due to the successive declines, the line of the Relative Strength Index (RSI) has fallen slightly. This could indicate a potential slowdown in Bitcoin’s bullish momentum, and it’s worth keeping an eye on the RSI line to see if this trend continues.
Source: TradingView
