1. Short-term Bitcoin buyers (STH) are at a heavy loss.
The first chart shows that those who bought Bitcoin in the past few months are now at about a 10% loss.
When buyers are at a loss, they sell Bitcoin at every small price increase to recover their losses. This hinders the price from going up.
However, this condition is often found in the last stage of a declining market, when weak individuals have sustained significant losses and the selling power diminishes.
The sharpness of the fever will come when the price rises above the average buying price of STH again.
2. New Bitcoin whales have capitulated.
The second chart indicates that new large investors (new whales) have incurred a loss of $386 million in a single day. These individuals typically buy late and panic sell quickly at a loss.
Older whales are more relaxed and are not selling as much.
This capitulation of new whales is a good signal for the market, as weak large holders exit and strong investors who hold calmly remain.
