Bitcoin capitulates for sixth time in 12 years as price hits $18,700

• Bitcoin’s overall losses have peaked for the second time in just four months.
• Bitcoin is closer to the market bottom, which may be the trend needed to start recovery.
• Trading at $19,272, Bitcoin needs to regain the $29,082 support level by the end of the third quarter.

No matter how often you hear it, it will always be surprising that Bitcoin, which was once worth around $67,655, has struggled to break $25,000 for three months. But after the events of June, the subsequent swings and recent declines have dragged the royal coin down to its previous lows.

Bitcoin Records Unprecedented Losses… Again

Since its all-time high of $67,655 in November, Bitcoin has been on a continuous downtrend that is about to complete a year in 2 months, but the downtrend has not come to an end. In fact, the recovery observed over the past three months was wiped out two weeks ago.

The fall from August brought BTC down to $18,780 yesterday, and with it came the losses that resulted in Bitcoin capitulating again. Net unrealized profit/loss has only reached this stage five other times since Bitcoin’s inception, including once just three months ago.

This is also the closest case of consecutive capitulations in Bitcoin’s history.

Bitcoin NUPL ratio

However, as BTC hit these lows, it also opened up the possibility of a trend reversal since the cryptocurrency is very close to the market bottom. The presence of the indicator of the total percentage of offers in profit in the green zone shows evidence of the same.

Bitcoin supply in profit

Should that happen, Bitcoin is looking at a nice upside, provided the broader market sentiment supports it.

Bitcoin back to $29,000

The current scenario is such that BTC is stuck below two critical resistances and turning both to support is very crucial. The first of these is the $22,840 line, which is the immediate resistance for Bitcoin, and the next critical resistance is at $25,272.

The area between the latter mark and $29,082 is a support block (orange) that has historically been strong support for BTC.

Bitcoin 24 Hour Chart

Should BTC decline further, it will bounce off $17,504 and move forward to turn initial resistance into support. From there, a jump through $25,272 will set BTC up to test $29,082 as support, which will be the first sign of recovery for BTC.