The Bitcoin Long-Term Holder SOPR indicator has dipped to the low point of this bull market

Bitcoin Long-Term Holder SOPR stands for Long-Term Holder Spent Output Profit Ratio, which is the ratio of profits realized by long-term holders who have spent their outputs. It is an on-chain Bitcoin metric that calculates the profit ratio of addresses (defined as long-term holders) that have held for more than 155 days when they sell Bitcoin. Specifically, this indicator assesses the ratio of the selling price of these long-held coins to their original acquisition price: if LTH-SOPR is greater than 1, it indicates that long-term holders are selling at a profit; equal to 1 indicates a break-even; and less than 1 indicates a loss on sale.

This indicator reflects the market behavior of long-term holders and the overall market sentiment. For example, when LTH-SOPR is high, it may suggest that long-term holders are locking in profits, implying that the market may be at the peak of a bull market or in an overheated phase; conversely, when it is low (especially below 1), it indicates that long-term holders are selling at a loss, which may signal the market bottom or the end of a bear market, thus helping investors determine potential buying or selling opportunities.