Rarely have Bitcoin holders been under as much selling pressure as in recent weeks

After the bullrun of 2021, a strong bear market began, however, there are already several signs that tell us that that process bottomed out. Today we review a metric that analyst Will Clemente recently shared, in which we see how the holders are immersed in losses, as has rarely been seen in the history of Bitcoin, which announces a possible capitulation.

By capitulation we mean an event that generates a strong wave of sales, where a large part of the market participants begins to sell at a loss, but once they are exhausted, we see a strong reversal of the trend.

Tracking the holders long-term of Bitcoin

A metric offered by the data provider Glassnode was shared and analyzed on Tuesday afternoon by analyst Will Clemente.

The indicator is the LTH Bitcoin Tracking, which tracks the losses of the portfolios of investors who buy and store coins with an eye on the long term.

Currently, we can observe in the graph of this metric, that holders are seeing unrealized loss levels, which have rarely been seen in the history of Bitcoin.

Only in 3 past periods did the holders see losses of this magnitude. To be precise, similar situations were experienced only near the bottoms of the bear markets of 2012, 2015 and 2018.

And what happened next?- strong upward impulses.

It is normal to see long-term investors plunged into heavy losses during magnitude bear markets. But, as long as they do not sell, it can be said that they have not lost.

The vast majority of these market participants are strong hands, and those who are not withstanding the pressure, speed up the process in order to leave this negative process behind faster.

Bitcoin is already waking up

After firmly breaking through the resistance at $21,500, we now see the Bitcoin price convinced to make that broad rally long awaited by the holders.

The support zone around $19,000 was an excellent ground to stop three recent bearish attempts.

However, the bulls still can not sing victory. While we are seeing the change of the short-term trend, there is still a relevant bearish direction to challenge.

Right now it seems that we will see purchases up to a minimum of $28,000. Above the next relevant resistance is at $32,150.

But, to confirm that the long-term trend was indeed resumed, we should expect that $35,000 will be surpassed.

As we see in the graph below, there is still a succession of lower and lower lows quite relevant in the weekly time frame, which must be eliminated.

All our publications are of an informative nature, so in no case should they be regarded as investment advice.

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