Capitulation ongoing but markets not at the bottom yet: Glassnode

cointelegraph.com:

Bitcoin wealth is being distributed from weak hands to strong hands due to ongoing capitulation from retail investors and miners, signaling that the bottom may be close.

The latest ‘The Week On-Chain’ report from blockchain analysis firm Glassnode on July 11 explains that market capitulations have been ongoing for about a month and that several other signals suggest bottom formations in Bitcoin prices.

However, Glassnode analysts wrote that the bear market “still requires an element of duration” as Long-Term Holders (LTH), who tend to have greater confidence in Bitcoin as a technology, increasingly bear the greatest unrealized losses.

They added that the market may need further “downside risk to fully test investor resolve, and enable the market to establish a resilient bottom.”

Unrealized losses are losses in the dollar value of a holder's position before selling.

Glassnode made this assessment based on the observation that in previous bear markets in 2015 and 2018, LTH held over 34% of the Bitcoin (BTC) supply that was in unrealized loss. The STH proportion accounted for just 3% to 4%.

Currently, Short-Term Holders (STH) are holding 16.2% of the coins in loss, while LTH are holding 28.5%. Coins are moving to new STH who aim to speculate on price but have less conviction about the asset, it added.

This implies that as LTH scoop up more coins, they must have diamond hands, meaning they must not sell, for analysts to note a true market bottom. Cointelegraph echoed this idea acknowledging that Delphi Digital also believes that more time is required under current market conditions to call this the bottom.

Related: Despite 'worst bear market ever,' Bitcoin has become more resilient, Glassnode analyst says

Bitcoin miners selling