Capitulation Is Happening. Has Bitcoin Bottomed Out?

For-chain analytics firm Glassnode was constantly talking about Bitcoin’s weaknesses in its 2022 reports and warning investors.

March Report:

April Report:

May Report:

The weakening in on-chain activities was interpreted as a signal of a larger decline, and it was stated that investors should surrender to the market for an increase.

So, did the expected capitulation come true with the last drop?

The leader of the Glassnode onchain analysis team, the analyst with the pseudonym Checkmate, stated in his last post that the capitulation they expected has begun to take place and that the investors have surrendered to the market by selling with high losses.

“My personal reading of the massacre at the grocery store:

USDT will soon return to $1.

When we look at the losses, this seems to be the second heaviest capitulation in history.

Bitcoin dropped as low as $24,000, which is a cheap price for BTC.

When we look at the realized loss graph, we see that the investors have really surrendered to the market.

From the chart above, we see that after a similar capitulation in May 2021, the price continued to decline for a while and then started to rise after finding the bottom. Although it is too early to say that there is a bottom in Bitcoin, we see that we are close to the bottom.

*Not Investment Advice.