Share:
  • Trading at $19,200, Bitcoin has been unmoved for more than a month straight, minimizing windows of profits.
  • The net unrealized losses ratio to relative profits shows that BTC is still in capitulated thanks to a lack of recovery.
  • Long-term holders might use this opportunity to accumulate Bitcoin as this is the ideal time.

Bitcoin, which once reigned at $67,000, is struggling to even close above $20,000 successfully today. The fall of the crypto market has left investors yearning for an exit, but the global markets’ bearishness is keeping the crypto market subdued as well.

Following the failed recovery back in September, Bitcoin is back at the lows that might support a bullish bias.

Bitcoin capitulates again

According to the Net Unrealized Profit/Loss (NUPL) ratio, Bitcoin is cushy in the capitulation zone, which it entered for the second time this year alone. The crash of June was the first time that BTC visited these lows, and it recently went back down in August after BTC fell from $23,000 to $19,000.

This year stands to be one of the most disappointing years for the crypto market in terms of profits. Not only is this Bitcoin’s second capitulation this year, but the sixth in its entire 12-year history.

Bitcoin NUPL

Usually, this low is a sign of trend reversal, but that is no longer a certainty given Bitcoin’s growing correlation with the broader markets. As of last month, the correlation shared between BTC’s price and the S&P 500 index stood at 0.59, and the same with NASDAQ reached 0.62.

Furthermore, Trading at $19,200 at the time of writing, BTC has seen no change in its price in over a month due to the lack of bullish cues. Treading just above the critical support line of $18,600, BTC is still under the 50-day Simple Moving Average (SMA) as well as the 100-day SMA.

TradingView ChartBitcoin 24-hour price chart

It is cues as such that evince just how much longer investors will have to wait in order to regain their profits.

Long-term holders back at it

The one cohort that can certainly make the most even of this situation is the long-term holders (LTH). According to the Reverse Risk, this cohort is just below the ideal zone of accumulation that has been the indicator’s home for almost the entire year.

Bitcoin Reverse Risk

During periods of high confidence and low price, BTC presents an attractive risk/reward to invest, which LTH can benefit from, provided there is a potential for recovery. As mentioned above, this could take time but since the average time a Bitcoin is held by LTHs is at three years, they might just end up accumulating.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Near Protocol Price Prediction: NEAR pumps 10% as investors envision another buy opportunity here

Near Protocol Price Prediction: NEAR pumps 10% as investors envision another buy opportunity here

Near Protocol (NEAR) price is trading with a bullish bias, with a sustained series of higher highs since the last week of January. With investors groping for discounted entry points, NEAR could correct before the next leg up.

More Cryptocurrencies News

Ethereum price teases with a breakout, eyes $3,200 milestone as ETH bulls show resolve

Ethereum price teases with a breakout, eyes $3,200 milestone as ETH bulls show resolve

Ethereum (ETH) price consolidation within the ascending parallel channel has lasted since October, with the Proof-of-Stake (PoS) token making multiple attempts to breakout. As it stands, Ethereum continues to outperform Bitcoin (BTC) with double the gains.

More Ethereum News

Solana Price Prediction: SOL could easily go all the way back to $79.49 low

Solana Price Prediction: SOL could easily go all the way back to $79.49 low

Solana (SOL) price is trading with a bearish bias, recording a series of lower highs and lower lows since mid-February. The downtrend has seen the Layer 1 (L1) token drop below the midline of the market range between $79.49 and $126.27.

More Solana News

BNB price eyes $400 as Binance Coin bulls keep showing up

BNB price eyes $400 as Binance Coin bulls keep showing up

Binance Coin (BNB) price has formed lower highs and lower lows over the past few days, but the bulls continue to maintain a strong presence in the market. BNB has also steadfastly shown strength despite the recent uncertainty in the market as altcoins awaited cues from Bitcoin (BTC) price.

More Binance News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP