According to CryptoQuant analyst Edris, a look at Exchange Inflow – Spent Output Age Bands metric revealed that coins previously held for 6-18 months had been “aggressively” distributed recently.
Most of these coins, according to Edris, were purchased during the 2021 bull market and above the $30,000 price mark. However, with increased uncertainty and doubts surrounding any significant growth in the price of BTC in the short term, some long-term holders have “exited the market at an approximate 50% loss.”
Edris believed these sellers might have capitulated, which could signal BTC is nearing the end of its bear market. He said: “If the recent sell-off is capitulation, then BTC is likely in the last stage of this bear market. The key will be to see if buyers can hold $20,000.
Similarly, another analyst CryptoHamster noted that the capitulation of long-term holders could signal that BTC is close to the end of its bear market. He said: “A lot of selling happening from addresses that had been holding for more than a year. This is what I would call capitulation.
What does technical suggest on BTC?
The BTC’s price is around $19,300, which is still in a consolidation phase. The market has been quite bearish over the past few weeks, but we could see some positive momentum starting to build up.
The technical indicators suggest that the bulls are starting to take control of the market and that a breakout is imminent. The RSI is above 50 and rising, indicating more upside potential in the market.
Similarly, the MACD is bullish and looks set to cross over into positive territory. This would confirm that a rally is underway.
The key level to watch out for on the upside is $20,500, which was resistance in the past. If this level is breached, we could see BTC prices rallying to new all-time highs.
On the downside, support levels are at $18,000 and $17,000. These are key levels to watch out for, and as long as these hold, we could see BTC prices move higher.
Overall, the technical picture is bullish, and a breakout looks likely in the near term. BTC prices could rally to all-time highs if the bulls can take out key resistance levels.
Bitcoin price analysis: Conclusion
The MACD histogram is positive and rising, indicating that the recent rally is gaining momentum. The RSI is above 50, suggesting the bulls are in control of the market.
