Analysis: Despite the market recovery, some investors are still choosing to cut their losses and exit the market, suggesting that the market may have ...
TL;DR
Despite Bitcoin's recent rebound, realized losses still exceed profits, indicating some investors are cutting losses and exiting. This capitulation selling may signal the end of a correction cycle, potentially clearing the market for a healthier restart.
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[Analysis: Despite Market Recovery, Some Investors Still Choose to Cut Losses and Exit, Market May Have Completed a Sufficient "Clearing Out"] According to Mars Finance, on January 6th, CryptoQuant analyst Darkfost stated, "Although Bitcoin has recently rebounded, realized losses still dominate. Looking at the weekly average realized profit/loss: realized profits reached $312 million; realized losses reached $511 million. Despite the market recovery, some investors are still choosing to cut their losses and exit. Historically, this type of capitulation selling phase often marks the end of a correction cycle. However, the strength of this capitulation should be monitored: its level is close to that of the previous bear market, which may mean that the market has completed a relatively sufficient 'clearing out,' creating conditions for a healthier market restart."