Bitcoin (BTC) continued its decline, which began in October, into February, with the price falling to levels around $60,000.
Although there has been a slight recovery in the last 24 hours, Bitcoin’s decline is deepening. At this point, analysts have begun to examine the behavior of different investor groups in the market.
At this point, CryptoQuant analyst Darkfost stated, “Since the situation in BTC has not shown any improvement, it is important to continue analyzing the behavior of different investor groups in the market. One of the key groups in this context is Long-Term Investors (LTH), who are known to be less sensitive to short-term price fluctuations.”
Analysts noted that long-term investors are currently seeing an average profit of around 74%, and the price is also approaching the LTH cost basis (currently estimated at approximately $38,900).
Sharing his analysis of the bear market bottom, the analyst stated that, according to historical cycles, each bear market is characterized by the Bitcoin price falling below this cost base.
“Looking at historical precedents, every bear market bottom has been characterized by the Bitcoin price falling below this cost floor, triggering a final capitulation phase with realized losses of approximately 20%.”
Bitcoin and the market were only able to recover after this stage and re-establish the foundations necessary for a trend reversal.
*This is not investment advice.
