The bitcoin (BTC) price seems to be struggling to get above $20,000 again. That will not have been the scenario that people who first purchased BTC between 6 and 18 months ago were hoping for. According to new research, this group of investors has been hit hardest by the bear market.
According to data from analytics platform CryptoQuant, a large proportion of these ‘recent’ BTC investors have already sold their coins. This is evidenced by the Exchange Inflow Spent Output Bands (SOAB) of bitcoin. This data clearly shows that most of these investors have recently sold their BTC on a large scale for less than what they bought the coins for. According to CryptoQuant, sometimes with more than 50% loss.
“These coins were bought between April 2021 and April 2022 at prices above $30K. this signal means that many holders who entered during the 2021 bull market and above $30K have recently capitulated and left the market at a loss of around 50%.”
Especially recently, it could be seen that new investors were selling in large numbers. Perhaps that had something to do with the fact that the BTC price slipped below $20,000 again, which of course was an important psychological boundary.
Has the bottom been reached?
The analysis of CryptoQuant also indicates that such an event can often mean a bottom, as this analysis also indicates it. This may have already been achieved, but may also be formed in the near future, according to CryptoQuant.
“This type of capitulation usually occurs in the last months of a bear market, indicating a potential bottom formation in the near future.”
In addition, it is stated that this may be an excellent time to buy. If bear markets in the past can be an indication of the future, then there is a chance that we have indeed seen the bottom, or will soon see it. Who knows, maybe there will be light at the end of the tunnel.