Bitcoin to witness third market capitulation? The answer might amaze you

ambcrypto.com:

In light of the ongoing bear market, BTC reached a monthly low of $37,614 after breaking its near-term support level of $38,000. Blockchain data and intelligence provider, Glassnode pointed out that a longer timeframe of holding onto the token without any profits in the near future may pave the way for the largest capitulation event that Bitcoin has ever experienced.

However, this is not the first time that Bitcoin would be undergoing market capitulation. BTC has undergone market capitulations in 2016 and 2018 after witnessing severe fluctuations for a period of 100 weeks.

At the time of writing, Bitcoin was trading at a red value of $38,410, with the Relative Strength Index (RSI) making multiple attempts to head towards the neutral zone but constantly sticking around the 40-point range.

Source: TradingView

Upon taking into consideration the token’s movement in the last four months, Bitcoin, as of 2 May, held a Market Value to Realized Value (MVRV) ratio of 1.57 supporting the thesis that the token is currently held at a loss.

Source: Glassnode

On 2 May, the number of active addresses also went up as compared to the number of active addresses on 1 May. The number of active addresses went up from 833,480 to 975,505 further strengthening the weightage of the above-mentioned analysis.

Source: Glassnode

According to Wu Blockchain, the Bitcoin mining difficulty was raised from the block height 733,824. The mining difficulty rate shot up by 5.53% from 28.22 T to 29.79 T, with the current hashrate at 222 EH/s.

A rise in the hashrate means that more and more people are joining the network to mine the coin, thus strengthening the security of the token. However, with the current price trajectory of BTC coupled with the MVRV data, market