For over 2 weeks now, the market has been selling at a loss. However, this process seems to be almost done.
SOPR, which is a ratio of profit-taking in the coins trading on any given day, seems to have found a local bottom on a weekly moving averge.
This is the deepest reset of weekly SOPR since March 2020.
Long Term Holders are accumulating while Short Term Holders sell. But here's where it gets interesting:
In the last month, selling from STH's has offset buying from LTH's.
However, in the 7 days, buying from LTH's is now offsetting selling from STH's.
Here's the big picture:
Lastly, Realized cap is trending down but the rate at which it's decreasing is slowing.
The downtrend shows coins last moved at higher prices are moving now. (realizing losses)
This also suggests the process of weak-hands selling is plateauing.
TLDR; New market participants are still selling BTC at a loss, but these short-term holders are no longer outpacing the rate that long-term holders are buying.
This process will take a while to finish. For now, patience.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
This ratio shows when Delta cap (difference between realized capitalization and the all-time moving average capitalization of Bitcoin) converges with Realized capitalization (cap based on when coins were last moved)
Without taking a ratio of the two, here are the convergences: