K33 Research compared data from past bear markets. They noted that price increases in previous bear markets led to significant selling pressure in inactive wallets, but this year the selling pressure from wallets inactive for more than two years was significantly lower.
Vetle Lunde, Head of Research at K33 Research, reported that 79% of Bitcoin’s circulating supply has been held by investors for over 155 days, reaching an all-time high.
Lunde noted that this group did not sell, and the 79% figure indicated that existing long-term investors were reluctant to sell and were absorbing the supply.
“…This is a sign that the bear market is coming to an end. A pattern has repeated itself where the proportion of long-term investors increases as the market approaches the bottom of major bear markets. This is happening now.”
According to K33 analysts, other typical bottoming signals observed include 50% of the total circulating supply losing value, a slowdown in outflows from spot ETFs, and a decrease in trading volume.
“…Market conditions have stabilized as ETF outflows, the main cause of recent weakness, have decreased. Trading volume has also fallen to its lowest level annually. This is a common occurrence during the later stages of a Bitcoin bear market.”
*This is not investment advice.