[Analysis] "Bitcoin Approaching Short-Term Bottom…Slowing Realized Losses Are Key Signal"

Bitcoin (BTC) has seen widening losses, and some say the likelihood of forming a short-term low has increased.

On the 18th (local time), Bitfinex analysts told CoinDesk, "the recent increase in Bitcoin's realized losses is moderating. The market is approaching a short-term bottom area," they analyzed.

Analysts said, "Historically, sustainable bottoms have formed only after short-term holders' capitulation," adding, "the current flow appears to be approaching that threshold." They explained that short-term holders' capitulation pressure is the process of exhausting remaining selling pressure.

James van Stratten, CoinDesk's senior analyst, said similar signals are appearing in technical factors. He pointed out, "CME Bitcoin futures opened at 93,840 dollars and left an unfilled gap in the 91,970 dollars area," and analyzed, "if price tests this gap and supply-demand stabilizes, conditions for a rebound could be created."

Although the market adjustment breadth has widened, on-chain·derivatives indicators are showing gradual signs of stabilization. Bitfinex said that while this correction is the third-largest since 2023, "the slowing of realized losses and the short-term investors' approach to the capitulation threshold align with conditions for a structural bottom," mentioning the possibility of a short-term recovery. However, it added that whether selling pressure is exhausted is a key variable for future inflection points.

Meanwhile, according to CoinMarketCap, Bitcoin is trading at 92,088.05 dollars, down 1.73% from the previous day.