On-chain signal in Bitcoin indicates the final phase of the bear market

By: rootdata|2026/07/18 23:34:44

An on-chain indicator has emerged suggesting that the bearish trend in the Bitcoin market may be nearing its end. CryptoQuant analyst Darkfost noted that this signal has appeared before significant Bitcoin recoveries in the past. However, he emphasized that this does not necessarily mean the market will rise immediately, as it may have entered the final stage of the downturn. The cost basis of short-term investors has fallen below that of long-term investors, continuing for three consecutive days. This structure has been observed in the final stages of previous Bitcoin bear markets. Short-term investors pulled Bitcoin down from $112,500 to approximately $69,000. This shift led to the STH cost basis dropping below the LTH level. Darkfost believes that the next bull cycle could gain momentum as new investors begin to accumulate Bitcoin above the average acquisition level of long-term investors. Recently, Bitcoin has managed to stay above the $60,000 level. The market remained stable following Strategy's decision to sell 3,588 BTC as part of its dividend payments. The next significant resistance level to watch is $67,248. At the time of writing, Bitcoin was trading at $64,141, with a price increase of 1.63% over the last 24 hours.

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