On-chain data analyst Murphy has highlighted that Bitcoin's long-term holders are nearing a critical point of structural surrender. As of February 5, key indicators such as the 7-day EMA of the Long-Term Holder Realized Profit/Loss Ratio (LTH-RPRL) and the Long-Term Holder Spent Output Profit Ratio (LTH-SOPR) have both dropped to 1. This suggests that long-term holders are no longer profitable, signaling potential capitulation.
Murphy notes that a significant influx of long-term, loss-making positions into trading platforms could indicate the market is approaching its final bear market drop. Historically, a full-scale collapse of long-term holders often marks the violent end phase of a bear market, potentially setting the stage for a market recovery.
Bitcoin Long-Term Holders Near Capitulation, Bear Market's Final Phase Looms
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