ShayanMarkets
Too Soon to Call It The Bull Market!
The bitcoin bear market has resulted in huge losses for all market participants in recent months. Even long-term investors, who usually spend their coins in profit, are now experiencing losses. It is common for long-term holders to act this way during the late phase of a bear market when all market participants panic sell or "capitulate.” A long-term holder's SOPR metric measures how much profit or loss they realize. Since late May 2022, this metric has trended below one, indicating that long-term holders constantly suffer from losing money. Historically, the bull market’s beginning was simultaneous with the metric crossing above one. Most recently, the metric started recovering and slightly increased due to the uptrend in Bitcoin’s price. Yet, it is still too early to name the $15.5K level the bear market’s bottom, as the recent impulsive rally could just be a bull trap. It is important to closely watch the long-term holders' SOPR metric in the short term to anticipate the price direction.