On-chain analytics firm Checkonchain has pointed out how data could suggest that the latest Bitcoin decline is part of a deeper bear market progression, rather than the final capitulation event.
Bitcoin Has Broken Below Both True Market Mean & Average ETF Cost BasisWhile the price drawdown so far has clearly induced a lot of market pain, it may not be enough yet, as Checkonchain has noted, “the underlying data suggests this is progression deeper into the bear, not the final capitulation event.”
The analytics firm has listed a few metrics pointing to this. First, the spot ETFs have faced negative netflows recently, but while the outflows have been sizeable, they have still lacked the character associated with the panic exodus witnessed at the end of a cycle.
Likewise, on-chain losses have observed an increase as the market crash has occurred, but they also haven’t yet reached a level that may be considered to be a reflection of a true capitulation event.
Finally, futures market data suggests traders have still been trying to catch the bottom. Checkonchain has described these conditions as “a regime where durable lows rarely form.”
In total, the cryptocurrency market as a whole has witnessed the flush of $185 million in long positions inside this window.
BTC PriceAt the time of writing, Bitcoin is trading around $76,100, down nearly 14% over the last week.
