Bitcoin Price: Has BTC Reached End Phase of Bear Market?
Currently, Bitcoin is going through one of the toughest bear markets ever. As of this writing, Bitcoin prices have fallen below the important psychological threshold of $20,000. There is a lot of back and forth action between the 78.60 Fib retracement level and where the price is now.
This suggests that sellers and buyers are engaged in a fierce tug-of-war, resulting in a large price swing over the intraday time frame. But one market researcher predicts that the Bitcoin bear market is coming to an end. Maybe Bitcoin can get out of this mess?
Bear Market Tests BTC Resilience
A study by Cryptoquant detailing Bitcoin’s current bear market situation was just released. Recent research suggests that a surge in Bitcoin holders could signal the end of the bear market.
There is a statistic called “Exchange Supply – Used Production Age Band” that can be used to determine the average age of coins sold on the market.
Source: Cryptoquant
According to the data presented, most coins on the market now were purchased between six and 18 months ago. The price of Bitcoin peaked between $30,000 and $60,000 during this time frame.
“One of the most valuable variables for analyzing capitulations is the Exchange Inflow SOAB. Looking at the graph, it is clear that coins minted between six and 18 months ago have been actively sold recently,” said Edris, the author of the report.
He claimed that these coins were bought for more than $30,000 between April 2021 and April 2022. This signal indicates that many investors who entered the market during the 2021 bull market and above the $30K threshold have just capitulated and exited with a loss by almost half.
According to the graph, even long-term Bitcoin holders liquidated their shares at a loss of around 50 percent. Edris pointed out that this kind of mentality can be witnessed when the market is set to bottom out and come back.
Has Bitcoin Hit Bottom?
A recent Twitter post by Willy Woo demonstrated once again that the bottom has not yet been reached. This is similar to a tweet he also made on September 14, a day after Bitcoin and the broader financial market fell 12.8% following the announcement of CPI data from the US Federal Reserve.
In that tweet, Woo stated that only 52 percent of all BTC in the market has bottomed, but the previous declines reached 60 percent. The crypto may or may not have bottomed, but investors and traders are currently wary of a short-term rally.
BTC total market cap at $368 billion on the daily chart | Source: TradingView.com Featured image from GOBankingRates, chart from TradingView.com
