Bitcoin Hasn't Entered Full Panic Phase Yet
CryptoQuant analyst @AxelAdlerJr commented shortly after today's Bitcoin price drop, stating that the current unrealized loss has surpassed 39%. This indicates a significant portion of buyers are now underwater, but a full-scale capitulation has not occurred.
The market has entered a phase of active pressure, yet analysts believe there is still room to maneuver before a total collapse. Historical data from 2018 and 2022 showed this metric exceeded 40% near cycle lows, suggesting we might be approaching a similar phase.
Market Cycle Bottom Could Be Near
An increase in unrealized losses often signals market cleansing, where weaker hands exit positions. This process typically sets the stage for stronger market movements in the following cycle.
- Bitcoin hasn't entered full panic phase
- Market still has breathing room
- Historical patterns suggest bottom may be near