Traders think Bitcoin bottomed, but on-chain metrics point to one more capitulation event

The bull market euphoria that carried prices to new highs throughout 2021 has given way to bear market doldrums for any Bitcoin buyer who made a purchase since Jan.

Historical data shows that the metric has declined into the sub-0.5 zone during the late stages of previous bear markets, which has yet to occur during the current cycle. Based on the current market conditions, a BTC price decline of an additional 10% could lead to a final miner capitulation event that would resemble the price decline and selling seen at the hight of previous bear markets.

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