The BTC LTH/STH SOPR ratio is approaching the capitulation warning zone. ⚠️ Key Point: Market sentiment is often more important than price. This indicator can help you determine who will collapse first. Points I Watch: - If the ratio falls below 1 = STH holders are selling at a loss (stress/forced selling) - If the ratio remains above 1 = Market sentiment is stabilizing, and the pullback may be nearing its end. Background: - This is not a macro bottom prediction. - This is a market stress indicator. Monitor it closely, but don't rely on it excessively. LTH vs. STH: - STH (Short-Term Holders) = Holders with less than 155 days of holding time. They react more strongly and are more prone to panic. - LTH (Long-Term Holders) = Holders with more than 155 days of holding time. Typically patient investors. SOPR (Spending-to-Output Profit Margin) indicates whether the transferred coins are profitable or loss-making: - SOPR > 1 = Profit Transfer - SOPR < 1 = Loss Transfer Therefore, the LTH/STH SOPR ratio compares who is realizing profits and losses: - Ratio Decrease = STH losses increase relative to LTH. Stress/Capitulation Risk. - Ratio Stable/Increasing = Weak players exit, stress relieved. My Understanding: This is a sentiment/stress indicator, not a magic stop-loss button.