BTC capitulation not yet here, bottom may be $55K: Analysis

Bitcoin has not yet entered a capitulation phase, with a potential market bottom forming around the $55,000 level, according to an analysis by CryptoQuant reported by The Block. CryptoQuant noted that historically, the realized price has served as a major price support and a likely indicator of a bear market bottom. Bitcoin is currently trading more than 25% above this level. For comparison, the price of BTC fell 24% below its realized price after the collapse of FTX and more than 30% below it in 2018. The subsequent bottoming process took an average of four to six months. The analysis also highlighted that the current monthly realized loss for BTC is around 300,000 BTC, significantly less than the 1.1 million BTC seen during the 2022 bear market, suggesting a structural bottom has not been reached. Other metrics also point to the absence of capitulation, including: - The Market Value to Realized Value (MVRV) ratio has not yet entered the extreme undervaluation zone. - The Net Unrealized Profit/Loss (NUPL) has not reached the lows of past cycles. - Long-term holders continue to sell. - The proportion of BTC in a state of profit remains higher than at previous market bottoms.