Bitcoin has recorded about $2.3 billion in realized losses over the previous week, a transfer one analyst described as among the many largest capitulation occasions within the asset’s historical past.
CryptoQuant analyst IT Tech wrote that Bitcoin’s seven-day common realized web losses reached $2.3 billion, putting the present sell-off among the many “prime 3-5 loss occasions ever recorded.”
IT Tech wrote:
“This is without doubt one of the largest capitulation occasions in BTC historical past, rivaling the 2021 crash, 2022 Luna/FTX collapse, and mid-2024 correction.”
Drawdown from the October excessive
Bitcoin is down almost 50% from an all-time excessive above $126,000 in October, and was buying and selling round $66,600 on the time of the report.
The transfer adopted a drop to about $60,000 on Feb. 6.
Analyst warns of a gradual bleed-out
IT Tech mentioned earlier “excessive loss spikes” have usually been adopted by rebounds, noting bitcoin briefly rallied above $70,000 on Tuesday.
IT Tech added:
“This might nonetheless be the start of a deep and gradual bleed-out. Reduction rallies occur even in extended bear markets.”
Realized value and attainable help ranges
CryptoQuant mentioned $55,000 marks Bitcoin’s realized value, which it described as “traditionally tied to bear market bottoms.”
CryptoQuant acknowledged:
“Previous cycles noticed BTC commerce 24% to 30% under this stage earlier than stabilizing.”
Nick Ruck, director of LVRG Analysis, mentioned the capitulation displays “intense short-term holder panic and washout” amid macro stress.
Ruck mentioned:
“Reaching the complete backside should still require further time and indicators from metrics like sustained institutional shopping for or miner stabilization.”
Ruck pointed to potential help within the $40,000 to $60,000 vary.