Bitcoin Exits Capitulation Phase, Eyes Higher Ground
Bitcoin has exited its capitulation phase and entered a transition period after reclaiming the average cost basis of short-term holders, according to a CryptoQuant analysis.
CryptoQuant contributor Crazzyblockk wrote that Bitcoin climbed from the low-$60,000 range to about $77,000 in five trading days, retaking the short-term holder realized price, or STH Realized Price, at $67,000 to $69,000. This broke a trend of many recent buyers being underwater.
Selling by long-term holders also remained limited. As Bitcoin fell to about $59,700 in June, the long-term holder realized price, or LTH Realized Price, held near $49,200. Crazzyblockk said this suggests there has been no structural wave of large-scale selling by long-term holders.
The rebound does not yet signal the start of a full-fledged bull market. Sharp early rallies after a prolonged correction can be driven more by leveraged liquidations and short covering than by sustained spot buying. Profit-taking by short-term holders may also add pressure, potentially keeping volatility elevated for now.