Despite recent price fluctuations of the leading cryptocurrency Bitcoin, blockchain data indicates that the market has not yet reached the classic capitulation phase.
Julio Moreno, head of research at CryptoQuant, stated in his assessment that there is still no clear signal to sell Bitcoin, and that it has not yet entered a full capitulation phase.
According to Moreno, this suggests that $BTC and the market are either in a minor correction or could face further decline.
The analyst also noted that $BTC holders have only recently started realizing their annual losses, which currently amount to about 136,000 $BTC.
Referencing previous cycles, the analyst added that Bitcoin's annual realized losses hit a bottom when they reached between 1.3 and 3.7 million $BTC.
Moreno added that this cycle could go down in history as the mildest loss phase in Bitcoin's history, but losses could also increase significantly and surpass current levels.
In the analyst's view, the current situation points to two different scenarios. In the first scenario, the current market cycle could become the cycle with the least amount of stop-loss selling on-chain in Bitcoin's entire history. In the second scenario, the market could face further selling pressure as it has not yet reached its true bottom.
In conclusion, Moreno emphasized that selling waves on a scale that could be characterized as capitulation have not been observed yet, and it is still too early to consider current price levels as the final cycle bottom.
*This is not investment advice.
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