Bitcoin is purging the weakest ones”
An analyst from the CryptoQuant community observes on-chain data and draws conclusions about the recent drop in bitcoin.
The price of bitcoin (BTC) fell below $110,000 this week, a level not seen since early July, and raised caution signals in the market. On-chain data shows that the drop, on one hand, is causing a shakeout among the most recent investors; and on the other hand, it is allowing more experienced and long-term participants to take the opportunity to absorb the supply.
The analyst from the data platform CryptoQuant known as Crazzyblockk points out that the 6% pullback from $117,000 is a classic market shakeout. As he sees it, new BTC holders are capitulating with losses, which constitutes a cleanup of speculative leverage and strengthens the market's foundation, in his opinion.
The specialist argues that the capitulation of “tourist” investors is a healthy development. He maintains that the exit of less convinced holders transfers BTC to hands with lower cost bases and greater conviction, benefiting the price.
