- Crypto Dan said that widespread selling at a loss usually marks the final stage of fear.
- A CryptoQuant post notes that Bitcoin starts to look “cheap” below $54,000.
- Recent data shows that nearly 92% of short-term holders are now in the loss.
CryptoQuant analysts are seeing early signs of Bitcoin capitulation, with long-term holders starting to sell at a loss. At the same time, nearly 92% of short-term holders are trading at a loss, a level that has often appeared near market bottoms and possible accumulation zones.
Bitcoin LTH Capitulation Signals Late-Stage Selling
CryptoQuant shared analysis from analyst Crypto Dan showing Bitcoin’s Long-Term Holder Spent Output Profit Ratio (SOPR) falling below 1. This indicates long-term investors, holding coins for more than 155 days, are now selling at a loss.
Crypto Dan noted that widespread selling at a loss typically appears during the final stage of market fear. In previous cycles, similar conditions aligned with major Bitcoin cycle lows as selling pressure weakened.
However, he added that it remains too early to confirm a definitive bottom.
92% of Bitcoin Short-Term Holders Now in Loss
CryptoQuant data shows nearly 92% of short-term holders are currently in a loss. The level reflects heavy downside pressure and heightened market stress.
Historically, such conditions often appear near capitulation phases, when weaker hands exit, and long-term investors begin accumulating.
Bitcoin Accumulation Zone Emerges Below $54K
A separate CryptoQuant analysis highlighted a potential accumulation range. According to analyst CryptoMe, Bitcoin begins to appear undervalued below $54,000 relative to market averages.
The threshold aligns with broader on-chain models, placing a possible bottom between $46,000 and $54,000. Analysts noted that identifying the exact bottom remains difficult, favoring gradual accumulation strategies.
On-chain data also shows tightening Bitcoin supply, with coins moving off exchanges into long-term wallets. This trend often appears during early recovery phases.
As of now, Bitcoin is currently trading near $66,830, down roughly 1.5% in the past 24 hours and nearly 6% over the last seven days.
Related: Bitcoin Enters Accumulation Zone as Whale Activity Raises Selling Risk
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Source: https://coinedition.com/bitcoin-bottom-near-cryptoquant-signals-bitcoin-capitulation-as-92-holders-in-loss/
