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Bitcoin LTH SopR Dips Below 1.0, Hinting At Early Capitulation Signs
Bitcoin's Consolidation and Long-Term Holder Concerns
- Bitcoin has remained in a tight range since November, stabilizing near key psychological levels.
- Traders are divided on Bitcoin's next move; some predict recovery while others foresee further declines.
- Analyst Darkfost notes emerging signs of long-term holder (LTH) capitulation, indicating market stress.
- Bitcoin last traded at current levels in April 2025, with many holders now facing unrealized losses.
- LTHs holding for over six months show signs of selling at a loss, marking a critical market phase.
Long-Term Holder SOPR Insights
- The LTH SOPR recently dipped below 1.0, suggesting some LTHs are capitulating by selling at a loss.
- The 30-day moving average of LTH SOPR is at 1.18, indicating an average profit of 18% but lower than the annual average.
- A further decline could signal expanding sell pressure, though it may also indicate exhaustion of selling pressure.
- For a bullish trend, LTH SOPR needs to stabilize and rise, showing renewed holder confidence.
Bitcoin Price Analysis
- Bitcoin trades below the $92,000–$94,000 resistance zone, crucial for market structure.
- The price remains above its rising 200-day moving average, supporting a constructive broader trend.
- Price action shows higher lows, indicating buyer support, though volume decline signals weak conviction.
- A break above $94,000 could lead to $100,000–$105,000, while failure to hold $86,000–$88,000 increases downside risk.
