CryptoQuant: Long-term investors capitulate, this is a good sign for Bitcoin – Bits Media

Analysts from the South Korean agency CryptoQuant believe, that long term investors, not reaching the goal, sell cryptocurrency.

CryptoQuant experts posted a report, Which is said, that the bearish market trend caused long-term investors to capitulate, and this positive factor for bitcoin.

The report's authors explain, that investors, investing money in Bitcoin for the long term, lost faith in growth to the planned level and started selling cryptocurrency. This factor indicates that, that the price has reached a multi-year bottom. At the same time, a one-time surge in sales may only be the beginning of a trend., and long-term cryptocurrency holders will need weeks and months, to finally capitulate.

The report provides an example, like in 2014, 2015 and 2018 years long-term BTC holders took months to do this. Whereas in the pandemic 2020 It took only a few days to surrender. The report says, that this factor can be considered as positive, and negative for Bitcoin.

"Obviously, that during previous periods of bearish trends there was a long period of capitulation by long-term holders, because these participants left the market, selling their assets to new participants at a loss. Beginners were happy to buy assets in huge shares and hold them in anticipation of profits during a future bullish trend.”, - The report says.

CryptoQuant analyst came to the conclusion, that long-term holders are selling at a loss, which indicates the “accumulation phase has begun”. Presumably, this could "provide an excellent opportunity for long-term investment in the market".

Recently, the famous American investor and head of Legg Mason Capital Management Bill Miller (Bill Miller) told, what, sold part of his bitcoin stock, although he continues to look at the market positively.