Haciyev Reşit 
Bitcoin’s sharp decline in recent weeks has triggered a development not seen in years. As the leading cryptocurrency fell to the $60,000 level, it was revealed that long-term Bitcoin holders (LTH) have sold at a loss for the first time since 2022. Data from on-chain analytics platform Glassnode highlights the scale of the psychological shift in the market. According to analysts, this move shows that not only short-term investors but even the strongest holder group has started to sell.
Long-Term Holders Sell at a Loss for the First Time
According to data shared by Glassnode, the “LTH SOPR” metric, which measures the profit/loss status of long-term holders’ sales, has dropped below 1 for the first time since 2022. A reading below 1 indicates that long-term investors are selling their Bitcoin at a loss. The 7-day moving average falling under 1 points to pressure in the market similar to the Terra LUNA and FTX crisis periods. Analysts note that long-term holders are typically the last group to capitulate, making this wave of selling a critical signal for the market. Historically, long-term holders selling at a loss is considered behavior often seen near market bottoms during bear cycles.
Glassnode data also shows that the accumulation rate of long-term holders has slowed significantly. This suggests that the psychological impact of the recent decline has been quite strong. According to analysts, the accumulation trend of the LTH group has fallen even below levels seen during the FTX and Terra LUNA crises. Since long-term holders are generally considered “strong hands,” their shift toward selling signals a notable weakening in market sentiment.
$65,000 and $54,000 Levels Are Critical
Glassnode analysts also emphasize key technical support levels. According to experts, the current drop appears to stem more from the liquidation of excessive leveraged positions rather than a systemic global financial crisis. Such “leverage cleansing” phases often result in sharp but short-term declines, ultimately helping the market achieve a healthier structure. Analysts warn that if Bitcoin remains sustainably below the $65,000 level, selling pressure could intensify, with the next strong support zone forming around $54,000.
This level is considered both a psychological and technical threshold. The $54,000 region previously saw heavy buying activity and strong demand, making it a potential new equilibrium point in the event of further pullbacks. Conversely, if Bitcoin reclaims and holds above $65,000 as support, it could be viewed as a medium-term recovery signal. According to analysts, price action within this critical range will be one of the most important factors determining Bitcoin’s trend in the coming months.
What Is Needed for a Market Recovery?
Analysts point to several key catalysts required for a strong Bitcoin recovery:
- Passage of regulatory clarity laws in the U.S. (such as the CLARITY Act)
- Acceleration of Federal Reserve rate cuts
- Continued strong capital inflows into Bitcoin ETFs
If these factors materialize, confidence could return to the market. Bitcoin’s drop to $60,000 has led even long-term investors to sell at a loss, signaling a significant psychological break. Glassnode data suggests that such behavior has historically occurred near market bottoms. However, failure to hold the $65,000 level could bring the $54,000 region into focus as the next major support. Ultimately, macro developments, ETF inflows, and regulatory news flow will determine the market’s direction.
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