Cryptocurrency analysis firm Alphractal argued that the sharp decline in Bitcoin before its recent recovery should not be seen as a “simple correction,” and that it was a clear case of capitulation. The company said that three strong on-chain signals, which rarely occur simultaneously, confirm this picture. According to Alphactal, three critical indicators that make the recent decline unique are: The company noted that Bitcoin miners have been forced to shut down a significant number of their mining rigs, putting real pressure on the ecosystem. It added that when miners start to “bleed,” it usually means the market is reaching its limit. Alphractal said that the decline in Bitcoin was fast, violent and far beyond the usual correction movements, and that this meant forced selling, liquidation and market pain rather than a technical pullback. The company stated that it is very rare for investors who have held BTC for a long time to suddenly spend coins, and noted that this behavior only occurs when market psychology is broken. Related News: BlackRock CEO Larry Fink and Coinbase CEO Brian Armstrong Issue Joint Statement on Bitcoin and Cryptocurrency When these three signals appear simultaneously, the “Capitulation Oscillator,” as defined by Alphractal, rises rapidly. This level has historically often signaled the final leg of a downtrend or the beginning of flattening periods, such as the one in 2021. Alphractal noted that this is not a guarantee of a definitive bottom, but such periods only occur once or twice each cycle. *This is not investment advice. Continue Reading: Analysis Firm Warned: “The Recent Drop Was Unlike Any Previous Correction” – Reveals What They Expect for Bitcoin
