Edris
Many loyal Hodlers have sold; What to expect?
✔️ During the late phases of bear markets, even the more loyal investors tend to capitulate out of fear and sell their coins at huge losses to prevent bigger ones. The other side of this trade is usually the smart money, a cohort of market participants with deep enough pockets to be able to accumulate cheap coins during a gruesome downtrend. ✔️ One of the most useful metric analyze capitulations, is the Exchange Inflow SOAB metric. Looking at the chart, it is evident that coins aged between 6-18 months ago have been sold aggressively recently. These coins have been bought between April 2021 and April 2022 at prices above $30K. This signal means that many holders who have entered the market during the 2021 bull market and above the $30K mark, have recently capitulated and exited the market at an approximate 50% loss. ✔️ These types of capitulations tend to occur during the last months of a bear market, pointing to a potential bottom formation in the near future.