An on-chain bitcoin metric that previously flashed at every cycle bottom since 2016 has triggered again as more investors sell at a loss during the current correction.
Key Takeaways:
Cryptoquant data shows bitcoin investors are realizing losses at a pace not seen earlier in the current correction, with a key on-chain signal flashing again.The latest reading points to a rise in loss-driven transactions, a pattern seen during periods of heavy selling pressure.More bitcoin is now moving below cost basis, a condition linked to volatile phases in past market cycles.“This is the first time this signal has triggered since the start of the correction.”
Historical Chart Shows Similar Signals During Earlier Bitcoin Bear MarketsThe analysis describes the latest reading as the beginning of a broader capitulation process rather than a single market event. It adds that these periods unfold over extended timeframes as more investors exit positions and interest in the market fades.
