Bitcoin is currently going through one of the toughest bear markets in history. 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 wide price swings during the intraday timeframe. But one market researcher predicts that Bitcoin’s bear market is coming to an end. Maybe Bitcoin can get out of this mess?
Bear Market Tests BTC’s Resilience
Research from Cryptoquant has just been published detailing the current Bitcoin bear market situation. Recent research suggests that a surge in Bitcoin holders may signal the end of the bear market.
There is a statistic called “Exchange In – Worn Out Age Bands” that can be used to determine the average age of coins sold on the market.
According to the data presented, most of the coins in the market now were bought between six and 18 months ago. The price of Bitcoin peaked between $30,000 and $60,000 during this time period.
“One of the most valuable variables for analyzing capitulations is Exchange Inflow SOAB. Looking at the chart, 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 stated 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 30,000 threshold dollars have just capitulated and exited with a loss of almost half. .
According to the chart, even long-term Bitcoin holders liquidated their shares with a loss of about 50 percent. Edris pointed out that this kind of mentality can be witnessed when the market is bottoming out and recovering.
Has Bitcoin Bottomed?
A recent post on Twitter by Willy Woo proved once again that rock bottom has yet to be 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 Federal Reserve’s CPI data announcement of the USA.
In this tweet, Woo claimed that only 52 percent of all BTC in the market has bottomed out, but previous lows were as high as 60 percent. Crypto may or may not have bottomed, but investors and traders are currently wary of a near-term rally.
BTC total market cap at $368 billion on the daily chart | Source: TradingView.com Featured image from GOBankingRates, chart from TradingView.com