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.

BTC consolidates above weekly support level | Source: BTCUSDT chart on TradingView