Analyst: BTC rebound may be near as long-term holders sell at a loss

An analysis suggests that the market may be poised for a rebound as long-term BTC holders have begun selling at a loss. In a contribution to CryptoQuant, on-chain analyst Crypto Dan noted that the Spent Output Profit Ratio (SOPR) for long-term BTC holders has dropped below one, indicating they are now selling at a loss. He explained that long-term holders are typically unfazed by short-term price fluctuations. When these holders begin to capitulate, it often means short-term investors have either exited the market or are facing significant losses. Historical data suggests this phase can lead to reduced selling pressure and the formation of a market bottom. While it is difficult to confirm a definitive bottom, Dan argued that the point at which losses become widespread can signify the peak of fear and serve as a starting point for a rebound.