"Bottom signal emerging for Bitcoin…Long-term holders enter capitulation zone"

An analysis suggests Bitcoin (BTC) may be nearing a bottoming zone, as signs have emerged that even long-term holders are selling at a loss.

On the 31st, analyst Cryptodan said in a CryptoQuant Quicktake report that "the fact that long-term holders’ SOPR has fallen to 1 or below means even long-term investors are selling while accepting losses," adding that "because they are the group least sensitive to short-term volatility, the onset of loss realization suggests broader market capitulation (capitulation·mass selling)."

SOPR (Spent Output Profit Ratio) is an on-chain indicator showing whether coins moved on-chain are, on average, sold at a profit or a loss at the time of sale. A reading at or below 1 indicates market participants are selling at a loss.

He continued, "By this stage, short-term holders have already left the market or are sitting on substantial losses," and explained that "ultimately, it can be seen as a situation where most market participants have entered a loss zone."

Compared with past cycles, such periods often coincided with phases in which selling pressure gradually became exhausted. Cryptodan said, "Under these conditions, selling pressure tends to weaken over time, and a market bottom or an area near a long-term low tends to form."

However, he cautioned it is too early to conclude the current level is an absolute bottom. Cryptodan added, "It is still too early to define this moment as a clear bottom, but a phase in which losses spread across the broader market is highly likely to be the final stage of fear," adding that "after that, it can gradually shift into a window of opportunity."