BEARISH 📉 : Bitcoin trades below $80,000 amid heightened selling pressure

Bitcoin Market Overview

Bitcoin is trading below $80,000 amid ongoing selling pressure and uncertainty.
The market shows limited buying conviction, with broader crypto sentiment remaining defensive.
Volatility persists, prompting analysts to focus on on-chain indicators for market exhaustion signs.

Holder Profitability and SOPR Insights

The Spent Output Profit Ratio (SOPR) has fallen to its lowest level in a year, indicating reduced holder profitability.
A convergence between long-term and short-term holders is observed, with the SOPR nearing the critical 1.0 level.
This suggests long-term holders are either realizing less profit or stopping sales at current prices.

SOPR's Impact on Market Dynamics

Depressed SOPR readings suggest a reduction in "smart money" selling activity.
Historical patterns indicate such conditions often precede periods of accumulation or local market floor formation.
If SOPR stabilizes around 1.0, it could signal exhausted distribution from long-term investors, allowing potential price relief.
Alternatively, continuing drops may lead to extended consolidation as the market digests volatility.

Technical Analysis and Price Movement

Bitcoin hovers around $78,000 after dipping to mid-$70,000s, lacking a definitive trend reversal.
The price remains below key moving averages (100-day and 200-day), indicating a bearish bias.
Previous support between $85,000 and $90,000 has turned into resistance, confirming a shift in market structure.
The recent sell-off saw high volumes, but the rebound witnessed lighter participation, hinting at short-covering rather than strong buying interest.
Bitcoin appears to be in a transition from a distribution phase to a consolidation/corrective regime.

Overall, Bitcoin faces continued downside risks unless it regains key resistance levels and averages.