Bitcoin Exits Capitulation Phase After Reclaiming Key Holder Cost Basis

Bitcoin has pulled out of a capitulation phase after buyers pushed the price back above a level closely watched by on-chain analysts, according to a new CryptoQuant report.

Bitcoin’s Five-Day Rally Explained

Bitcoin climbed from the low-$60,000 range to around $77,000 in just five trading days, according to CryptoQuant . The move let Bitcoin reclaim the short-term holder realized price, sitting between $67,000 and $69,000, a band it had traded below for most of July. The breakout on August 19 and 20 marked the first shift in market direction since May.

Long-Term Holders Stayed Calm

During June’s drop to about $59,700, the long-term holder realized price only slipped to around $49,200, a smaller decline than seen at similar points in past cycles. That suggests long-term investors largely held their coins rather than selling in bulk.

What Comes Next for Bitcoin Price

Bitcoin now sits near its True Market Mean Price of $76,500, with the Active Realized Price at about $83,800. A break above $83,000 could open the door toward $98,000. Confirming a full trend reversal would require holding above $67,000 to $69,000 and eventually reclaiming the one year holder realized price near $104,800. Bitcoin’s RSI of 85.4 and Greed Index reading of 78 point to overheating in the near term.