On-chain analytics firm Checkonchain assessed that Bitcoin may have already formed a low for the current cycle after undergoing two rounds of investor capitulation.
James Check, founder of on-chain analytics firm Checkonchain, said Bitcoin may have already passed the bottom of this cycle after experiencing two rounds of investor capitulation.
He said, “Bitcoin went through its first capitulation phase in February, when it fell to around $60,000 and buyers at the highs sold at a loss. Then, after months of sideways trading, a second capitulation emerged around $58,000 in June and July amid market uncertainty, absorbing a substantial portion of the selling pressure. On-chain indicators show that approximately $300 billion worth of supply is concentrated in the $58,000–$70,000 range of Bitcoin purchase prices. As prices subsequently recovered, around 4 million BTC were recorded as having shifted from an unrealized-loss position to a profitable position.”
He also emphasized that “rather than relying solely on the historical four-year cycle, investors should closely examine investor purchase prices and realized and unrealized profit-and-loss conditions.”
He added that on-chain flows showing whether long-term holders and other investor groups are accumulating coins or distributing them through selling are also key.