Long-term Bitcoin Holders Are Capitulating, But This Shouldn’t Worry You

Most investors are still capitulating, according to the Long-Term Bitcoin Holder Spent Price against the Cost Basis indicator, as the difference between the purchase price and the selling price continues to rise. The present capitulation could be the market’s greatest dispersal.

Bitcoin was trading at its peak, rising capitulation among long-term holders could have been concerning

In the event of a sustained rangebound movement, we are less likely to observe the negative impact of a reasonably big selling volume.

The report from Glassnode also included a rundown of other data, such as realized profit and loss on the cryptocurrency market, which shows us the average USD value at which investors can enter and exit the market. We can use the statistic to detect market stages such as bearish, bullish, and disbelief.

The crypto market, according to the statistic, is currently in a negative phase, with losses surpassing realized profits. While Realized Profit and Loss can provide insight into present market conditions, it also allows us to see the length of each market cycle. Between 2016 and 2019, three full cycles were pushed, however between 2020 and 2022, the same amount of cycles were pushed in only two years.

Almost every basic on-chain statistic indicates that the cryptocurrency market is trending in a bearish direction, with most investors capitulating, retail traders losing money, and long-term holders’ profitability being low.

However, since on-chain indicators turned negative during Bitcoin’s third month of decline, the market could be on the verge of reversing, as every cycle on it has become substantially shorter than bullish and bearish cycles between 2016 and 2019.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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