Down, But Not Out
The Bitcoin bull has taken a strong jab to the face, but is it enough to knock the spirit out of the bulls?
‘Everyone has a plan until they get punched in the face’ — Mike Tyson
G’day Folks,
After a pretty wild start to the week, it is a great time to do a damage assessment. In this piece, I will step some of the key concepts and tools that I use to assess market conditions after a major sell-off event like this.
What I am trying to do is gauge whether this sell-off is likely to be savage enough that it breaks the confidence and conviction of the Bitcoin bulls.
As it stands, over 25% of the circulating BTC supply is now underwater, and almost every Short-Term Holder coin is now held at a loss. We have seen similar conditions at the start of the 2018, 2019, and 2022 bear markets, so it is important we dig in to assess the damage.
So without further ado, let’s run through the on-chain data to make an objective assessment as to whether we need to be putting on our bear market goggles.
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