{"id":7521,"date":"2022-09-30T20:31:32","date_gmt":"2022-09-30T20:31:32","guid":{"rendered":"https:\/\/www.cryptoheretostay.com\/?p=7521"},"modified":"2022-09-30T20:31:32","modified_gmt":"2022-09-30T20:31:32","slug":"bitcoin-2021-bull-market-buyers-capitulate-as-data-shows-50-losses","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=7521","title":{"rendered":"Bitcoin 2021 bull market buyers \u2018capitulate\u2019 as data shows 50% losses"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin&#8217;s (BTC) spot trading below $20,000 is seeing a new \u201ccapitulation\u201d event encompassing an entire year\u2019s worth of buyers, research reveals.<\/p>\n<p>In one of its Quicktake market updates on Sep. 29, on-chain analytics platform CryptoQuant flagged intense selling by a large number of recent hodlers.<\/p>\n<h2>2021 bull market coins &#8220;have been sold aggressively&#8221;<\/h2>\n<p>As BTC\/USD lingers near levels barely seen since 2020, it is not just miners feeling the pinch.<\/p>\n<p>Analyzing Bitcoin\u2019s Exchange Inflow Spent Output Ages Bands (SOAB), CryptoQuant contributor Edris showed that those who bought between April 2021 and April 2022 have been selling coins en masse \u2014 for less than they bought them.<\/p>\n<p>\u201cLooking at the chart, it is evident that coins aged between 6-18 months ago have been sold aggressively recently,\u201d he concluded.<\/p>\n<p>\u201cThese coins have been bought between April 2021 and April 2022 at prices above $30K. This signal means that many holders who have entered the market during the 2021 bull market and above the $30K mark, have recently capitulated and exited the market at an approximate 50% loss.\u201d<em>Bitcoin exchange inflow Spent Output Age Bands (SOAB) chart (screenshot). Source: CryptoQuant<\/em><\/p>\n<p>Such events should not be taken likely because they tend to occur at the bottom of bear markets. The only question is whether the recent macro bottom in June at $17,600 will be this one\u2019s floor.<\/p>\n<p>Edris added:<\/p>\n<p>\u201cThese types of capitulations tend to occur during the last months of a bear market, pointing to a potential bottom formation in the near future.\u201d\u00a0<\/p>\n<h2>Profit warning meets profit potential<\/h2>\n<p>Investigating Bitcoin\u2019s Spent Output Profit Ratio (SOPR) metric, meanwhile, fellow CryptoQuant contributor Caue Oliveira highlighted another historical bear market trend repeating itself.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin price due \u2018big dump\u2019 after passing $20K, warns trader<\/em><\/strong><\/p>\n<p>SOPR divides the price paid for an amount of BTC by the price it is sold at. The resulting figure fluctuates around 1, with values below indicative of a bear market as investors begrudgingly shoulder net losses.<\/p>\n<p>According to data from fellow on-chain analytics firm Glassnode, as of Sep. 29, entity-adjusted SOPR was just over 0.95.<\/p>\n<p>The metric is trending back towards 1, having seen a local bottom in June, suggesting that the prime buying opportunity may have already hit.<\/p>\n<p>\u201cLooking at the on-chain spending pattern of long-term holders, measured through the Spent Output Profit Ratio\u2026 we can find the biggest selling points at a loss,\u201d Oliveira wrote.<\/p>\n<p>\u201cHistorically these points have been the best risk-adjusted entries in the last two bear market floors.\u201d<\/p>\n<p>Looking ahead, a \u201cmaximum pressure point\u201d for long-term holders (LTHs) is on the cards, he added, referencing selling pressure decreasing as SOPR inches higher.<\/p>\n<p><em>Bitcoin entity-adjusted Spent Output Profit Ratio (SOPR) chart. Source: Glassnode<\/em><\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-2021-bull-market-buyers-capitulate-as-data-shows-50-losses\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin&#8217;s (BTC) spot trading below $20,000 is seeing a new \u201ccapitulation\u201d event encompassing an entire year\u2019s worth of buyers, research reveals. In one of its Quicktake market updates on Sep. 29, on-chain analytics platform CryptoQuant flagged intense selling by a large number of recent hodlers. 2021 bull market coins &#8220;have been sold aggressively&#8221; As BTC\/USD [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7522,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-7521","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7521"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7521\/revisions"}],"predecessor-version":[{"id":7523,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7521\/revisions\/7523"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/7522"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}