According to Glassnode’s weekly on-chain report, miner capitulation continues as extreme financial stress is sure to exist.
The agency added that there could be lingering pains and further downside risks before the market establishes a resilient bottom. Analysts who conducted the research say Bitcoin investors are not out of the woods yet. Even professional traders have a hard time predicting exactly when the market bottoms.
Glassnode noted that miners are still selling, as they have been for the past few months. However, in the previous bear market, the capitulation of miners lasted about 4 months, so the outflow may continue into the third quarter. It also noted that the decline during the 2018/19 bear market lasted about 15 months, culminating in a peak-to-trough Bitcoin price drop of 84%.
During this cycle, a similar scenario could see Bitcoin reach a bottom around $12,000-$13,000, with the market remaining range-bound until the first quarter of 2023.