Cryptoquant says Bitcoin bottom not in
Cryptoquant warned that bitcoin’s latest sell-off has yet to produce the structural reset typically associated with a durable bear market bottom.
In its February 12 Institutional Insights report titled “Patience: Bear Market Bottoms Take Time to Form,” the analytics firm said recent volatility does not resemble historical cycle lows.
“Patience: Bear Market Bottoms Take Time to Form,”
Said Cryptoquant in its latest Institutional Insights report.
Researchers noted that bitcoin holders realised $5.4 billion in daily losses on February 5, the largest since March 2023 and exceeding losses recorded after the FTX collapse, yet monthly cumulative realised losses remain far below the 1.1 million BTC seen at the end of 2022’s bear market.
The firm added that the MVRV ratio has not entered the extreme undervalued zone that has historically preceded sustained recoveries, while the NUPL indicator has yet to show the roughly 20% unrealised losses that typically mark price bottoms.
Long-term holders are currently selling near breakeven rather than enduring the 30% to 40% losses seen at prior cycle lows, and Cryptoquant’s proprietary Bull-Bear Market Cycle Indicator remains in the Bear Phase instead of the Extreme Bear Phase associated with prolonged bottoming periods.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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