Mid-Term Bitcoin Holders’ Capitulation Signals Market Rebound
Bitcoin holders in the 3–5 year cohort are selling during downturns, mirroring short-term traders rather than veteran investors. This mid-term Bitcoin holders’ capitulation often coincides with market bottoms and signals subsequent rebounds. CryptoQuant’s Exchange Whale Ratio has climbed to 0.47–0.50, levels historically preceding price stabilization and recovery. Bitcoin’s Fundamental Index indicates the asset sits between the accumulation and expansion phases, reinforcing bullish momentum. Glassnode reports strong on-chain fundamentals with no red flags. Traders may view capitulation by these Bitcoin holders and rising whale activity as early indicators of a new bullish cycle.
Bullish
The capitulation of 3–5 year Bitcoin holders historically marks market bottoms as mid-term holders exit under pressure, removing weak hands. When they sell en masse, it precedes price stabilisation and rebound, as observed in previous cycles. The recent spike in CryptoQuant’s Exchange Whale Ratio to 0.47–0.50 echoes past whale-driven accumulation phases that kicked off rallies. Combined with Bitcoin Fundamental Index positioning between accumulation and expansion, and no red flags in on-chain metrics per Glassnode, these factors point towards renewed buying pressure. Short-term traders may see initial volatility, but long-term outlook improves as selling exhausts weak holders and sets the stage for a bullish phase.