The global crypto market seems to have come under the ‘bear claw’ again as the overall market capitalization has dropped by 2.75%, to be positioned at $888 Billion.
The world’s largest cryptocurrency by market capitalization-Bitcoin- which had just entered the recovery phase, has once again lost its $20,000 price level.
Currently, the currency is trading at $19,908, with a fall of 2.58% in the last 24hrs.
July 11th’s ‘The Week On-Chain’ report from Glassnode, a Blockchain analysis firm, suggests that it has been a month since market capitulation, and many other indicators point towards a bottom for Bitcoin price. This is due to the capitulation of retail investors and miners.
On the contrary, Glassnode analysts believe that Long-Term Holders still are optimistic about Bitcoin and its technology, which is why they continue to bear the losses.
They further said that to test the investor completely, the market should settle and be allowed to reach a strong bottom.
Market Is Testing A Bottom
This analysis by Glassnode was based on the earlier bear markets of 2015 and 2018, wherein LTH had over 34% of the Bitcoin supply in unrealized losses. The Short-Term Holders held just 3% to 4%.
At present, Short-Term Holders (STH) have 16.2% of their currencies in loss, and LTH has 28.5%.
If Bitcoin miners sell their holdings, it usually indicates that the market might be testing a bottom. As per Glassnode, miners have sold around 7,900 Bitcoin since May; however, now it has been reduced to 1,350 per month.
Time span is an essential factor to consider when evaluating the market bottom. History tells us that in the 2018-2019 bear market, it took four months for the miner capitulation to form a bottom.
Miners now have about 66,900 Bitcoin; hence, the next quarter will see increased distribution unless the currency prices recover.
In a nutshell, according to Glassnode, the market is about to approach a bottom. There are several indications for this, and the investors should be prepared to endure more pain in the coming days.
How do you think this will play out? Will the Long-term Investors continue HODLing?