Bitcoin Stuck in Bearish Regime Despite Price Bounce
Bitcoin's recent price action has led to some mixed signals in the market. The cryptocurrency saw minor losses over the past few days of trading, and its spot ETF inflow streak, which had been ongoing for nine months, was broken by a $225.1 million outflow on Thursday, July 23.
The bulls have struggled to break out past the $67k local supply zone, with the bears taking control of the market as a result. According to CryptoQuant's data, the Bitcoin MVRV ratio remains above 1, indicating that the aggregate holder is still in profit.
Historically, when the MVRV falls below 1, it has marked the depths of bear markets. However, in this current cycle, the market is not yet at bear market bottom levels, but rather far from bullish overheated territory.
On-chain data suggests that the cyclical capitulation may not have ended yet, with long-term holders possibly using the recent bounce as an opportunity to reduce their exposure ahead of any further weakness.