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Here’s the Bad News for Bitcoin: Capitulation Is Not Here Yet (Analysis)

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Despite Bitcoin’s huge drawdown over the weekend, one analyst believes the bottom has not yet come. Chartoday, an educational resource on technical analysis, claims that most of the “bearish targets” have not yet been touched.

  • According to the message registered on the CryptoQuant analytical site, the Spent Output Profit Ratio (SOPR) indicator does not yet show signs of decline.
  • SOPR measures whether the transferred coins are sold at a profit or at a loss. A value greater than 1 means that they are sold at a profit, and vice versa.
  • The reading has only recently fallen below 1. However, historically this event has coincided with further consolidations and price pullbacks in past bear markets.
  • “Bitcoin’s next move will likely continue to fall until we see more coins selling at a loss,” the post reads. “That’s what capitulation means, after all.”

  • The entire crypto market has now crashed to a low not seen since December 2020. The Bitcoin Relative Strength Index (RSI) — a measure of an asset’s momentum and whether it’s overbought or oversold — has also reached all-time lows.
  • CryptoQuant CEO Ki-Yong Joo detailed the market conditions on Twitter. He refined that the average blockchain wallet is now at a loss.
  • At the end of May, Joo stated that Bitcoin was approaching its “cyclical bottom” using UTXO age groups.
  • “UTXOs older than 6 months make up 62% of the realized limit,” he said. said. “During the big sell-off in March 2020, this figure also reached 62%.”

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Credit : cryptopotato.com

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