Bitcoin Awaits Capitulation Signal Amid Modest Losses

Bitcoin's on-chain data suggests that it has not yet reached a full-blown capitulation phase, which is characterized by intense selloffs driven by panic and fear. According to on-chain analyst Julio Moreno, market participants have only just started to book realized losses on an annual basis, with the total currently standing at approximately 136,000 BTC.

This number is significantly lower than in previous bear market cycles, where annual realized losses swelled to 1.3 million BTC and 3.7 million BTC before a bottom was confirmed. Moreno notes that this cycle could go down as the mildest loss phase in Bitcoin's history.

However, he also warns that losses could still deepen from current levels, meaning the market may not yet be out of the woods. The absence of a clear capitulation signal introduces uncertainty for traders and long-term holders, who are watching for a definitive bottom.