Despite recent price fluctuations in the leading cryptocurrency Bitcoin, on-chain data indicates that the market has not yet reached a classic capitulation phase.
Julio Moreno, head of research at CryptoQuant, stated in his assessment that there is no strong capitulation sell signal yet in Bitcoin and that it has not entered a full capitulation phase.
According to Moreno, this indicates that BTC and the market are either in a slight correction or may face further declines.
The analyst also said that BTC holders have only recently started recording their year-over-year losses, currently totaling around 136,000 BTC.
Referring to previous cycles, the analyst added that Bitcoin’s annual realized losses bottomed out when they reached between 1.3 million BTC and 3.7 million BTC.
Moreno added that this cycle could go down in history as the mildest phase of losses in Bitcoin history, but that losses could also deepen beyond current levels.
According to the analyst, the current situation points to two different scenarios. In the first scenario, the current market cycle could be the one with the lowest on-chain stop-loss sales in Bitcoin history. In the second scenario, the market may face further selling pressure as it has not yet reached its true bottom.
In conclusion, Moreno emphasized that a wave of selling on a scale that could be described as capitulation has not yet been seen, and that it is too early to consider current price levels as a definitive cycle bottom.
*This is not investment advice.
