Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Unprecedented statistics from Thursday’s bitcoin downturn indicate a potential market bottom is approaching.
Extreme capitulation indicators are now aligning with levels previously observed only during significant cycle lows.
Several indicators suggest that the bitcoin price is nearing a low point. (sergeitokmakov/Pixabay, modified by CoinDesk)
Key points to note:
- Almost 10 million BTC are presently at a loss, marking the fourth-highest figure on record.
- Bitcoin has reached extreme oversold conditions, with the RSI at its third-lowest level, in conjunction with a Fear and Greed Index below 10 and the most significant daily decline since the FTX collapse in 2022.
- On Friday, Bitcoin recovered to $68,000 from a low of $60,000 observed on Thursday.
Bitcoin’s collapse on Feb. 5 will be recorded as one of the most significant selloffs in history. Below are the essential statistics that characterize the event and suggest how much further the price may decline.
The bitcoin price opened the day around $73,000 and plummeted to a low of about $62,000, a drop of over $10,000. The day’s 14% decrease was the largest single-day fall since November 2022, during the collapse of the crypto exchange FTX.
STORY CONTINUES BELOWDon’t miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newslettersSign me up
The Fear and Greed Index fell into single digits, a threshold reached only a few times throughout bitcoin’s 17-year timeline. Concurrently, bitcoin was recorded as the third most oversold in its history based on the RSI, which measures the pace and fluctuations of price movements.
Related Posts
Profit and Loss Supply
The circulating supply at a loss, defined as the number of coins that last traded at values higher than the current market price, surged to nearly 10 million BTC. This is the fourth-highest level ever, similar to the bear market lows seen in 2015, 2019, and 2022.
Total Supply in Loss (Glassnode)
Another metric, indicating the circulating supply of long-term holders at a loss, reached 4.6 million BTC. In previous bear market lows, this figure exceeded 5 million BTC, indicating that this measurement is nearing, but has not yet fully reached, prior extremes.
Total Supply in Loss by LTHs (Glassnode)
The supply in profit and supply in loss are nearly equal, a state that has historically coincided with the bottom of significant market downturns. Currently, approximately 10 million BTC are in profit, while another 10 million BTC are in loss.
Though it is uncertain whether bitcoin has reached its bottom, historical patterns indicate it is likely approaching this point, especially as bitcoin is already bouncing back towards $68,000.
Nonetheless, market participants may be anticipating that bitcoin will test its 200-week moving average, currently situated around $58,011.
