Bitcoin Long-Term Holders (LTHs) Have Just Taken Large Profits, BTC Price Crashes Below $58K

As pointed out by an analyst in a CryptoQuant Quicktake post, the Bitcoin long-term holders harvested a large amount of profits during the latest

Bitcoin observed a crash below the $58,000 level today, with the coin showing a brief dip below $57,000 before recovering back up. Now, on-chain data suggests that the Bitcoin long-term holders might have played a part in this price movement.

As on-chain data reveals, the Bitcoin long-term holders have just taken a large amount of profits during the latest price drawdown.

On-chain metric Spent Output Profit Ratio (SOPR) determines whether BTC investors are selling/transferring their coins at a profit or loss. Values above 1 indicate net profit from selling, while those below 1 show loss-making selling activity.

In a related development, an analysis of the Spent Output Profit Ratio (SOPR) reveals that a specific segment of the user base has been actively selling their holdings at a profit. According to the on-chain data, the Bitcoin long-term holders (LTHs) have just taken a large amount of profits during the latest price drawdown.

The LTHs are defined as those investors who have been holding onto their coins for at least 155 days. This group is generally known for their tendency to not sell their holdings no matter the market conditions. However, the recent price movements seem to have broken even these diamond hands.

The following chart shows how the SOPR of the LTHs has been spiking up to very high values during the past day:

The spikes in the metric above the value of 1 on the LTH SOPR indicate that these HODLers sold some coins that were carrying huge profits.

Zooming in on these spikes reveals that the Bitcoin LTH SOPR hit values as high as 10 during a lot of these spikes. At such times, it can be deduced that this group realized profits equal to over ten times the losses during those transactions.

Considering that these LTH SOPR spikes occurred just before BTC’s descent towards the levels below $58,000, it seems possible that this profit-taking push from these normally-resolute investors was at least in part responsible for the crash.

Another on-chain indicator, the Bitcoin Spent Output Age Bands (SOAB), reveals the breakdown of these LTH transactions. The indicator shows the age of the last time a coin was moved before it was sold.

The chart below shows that most of the LTH coins sold during this sell-off were from the 5-year to 7-year band, indicating that they were last moved during 2017.

It is unclear what motivated these old entities to sell after sitting out an entire cycle, but if this is the beginning of a selling spree from them, things could get worse for BTC.

At the time of writing, BTC is trading at a price of $57,700.

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