ShayanMarkets
Long Term holders' Capitulation!
When market participants suffer significant losses, suggesting a “Capitulation” event, markets usually enter a bottom discovery structure phase. Given that long-term holders own most of the supply, there is a lot of emphasis on their capitulation in the Bitcoin market. A long-term holders’ capitulation phase is needed for a multi-year bottom to form. This chart consists of the 30-day exponential moving average of the Long-Term Holder SOPR and Bitcoin’s price. It is apparent that during prior bear markets, a lengthy period of long-term holders’ capitulation occurred since they significantly realized losses. The fact that the metric has fallen below 1 indicates selling pressure from long-term investors. This has frequently triggered the last stage of the bear market. Nevertheless, It should be noted that this phase might take several frustrating months of volatility accompanied by numerous massive shakeouts.