Renowned Trader: Bitcoin Historical Bottom Signal Reappears, May Still Need Several Months of Range-Bound Trading to Complete Accumulation

BlockBeats News, August 12th. Renowned trader Doctor Profit posted a message stating that a key Bitcoin historical indicator is signaling that the "bottom has either formed or is very close." In 2015, 2019, and 2022, the bear market bottoming phase began when the 3 to 6-month holder realized price crossed below the 1 to 2-year holder realized price. He believes this indicates that newer buyers capitulated into losses and sold, transitioning Bitcoin into the hands of longer-term holders. Currently, this crossover is appearing for the fourth time, with the BTC price below the average cost basis of these two holder categories.

However, historically, this signal does not promptly lead to a reversal; Bitcoin typically undergoes several months of consolidation to complete the bottoming process. Therefore, this phase can also be seen as a long-term accumulation range. He considers the current situation to be in the bear market bottoming formation and long-term accumulation phase. Doctor Profit stated that over the past few weeks, he has been gradually buying BTC in batches between $54,000 and $64,000 and continues to dollar-cost average with each 5% tranche.