Bitcoin (BTC) has faced minor losses in recent trading days. Spot ETF inflow streak, longest in nine months, recently broken $225.1 million exit open Thursday, July 23.
Bitcoin was still trading in a long-term downtrend. Bulls cannot cross the dam 67 thousand dollars The local supply zone returned control of the market to the bears.
Here’s what this means for investors
Bitcoin MVRV and realized losses indicate THIS
When the MVRV ratio is above 1, it indicates that the overall owner is still in profit. Historically, the depths of bear markets have only been reached when MVRV falls below 1.
Crypto analyst Rei Researcher pointed out that this has not been the case so far in the current cycle. The market was far from overheated bullish territory, but it was not yet at the bottom of the bear market.
On-chain data showed that the cyclical capitulation may not be over yet. The recent bounce may have offered some long-term investors an opportunity to reduce risks before further weakness occurs.
Analyst The Chess Onchain observes that Bitcoin supply is currently in profit 57.5%. 30 day average For long-term bearers, SOPR needs to retrace 1.0 to reliably mark the end of the bear trend. This metric 0.86 Now.
With this event seen as a historical bar, the analyst expects the supply in the profit metric to at least 64%. Until the metric moves above these levels and stays there for a few weeks, any recovery in price could be considered to be occurring in a bearish regime.
Additionally, when the price rally began in early June, over six months old BTC rose to 2. 12%-16% foreign exchange inflows and have fallen since 0.8%.
The cost basis for a group of owners who purchased 1 month to 2 years ago is as follows: $72 thousand – $102 thousand window.
Oversupply is another threat to sustainable recovery. Therefore, a new wave of selling and a deeper capitulation that will force these holders to sell is a possibility that traders and investors should be prepared for.
Data shows that Bitcoin has not yet emerged from the broader bearish regime.
Final Summary
- The Bitcoin MVRV ratio has yet to drop below 1.0, which has tended to signal bear market bottoms in previous cycles.
- It may be different this time, but at-the-money supply and LTH SOPR metrics point to the same thing; The current price rise comes within a bearish regime.
