Aug 31, 2025
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Bitcoin Traders Not Yet in -12% Capitulation Zone Despite Price Gains
Bitcoin gained 1.50% in the last 24 hours, trading around $109,000 after a previous correction. Market sentiment is neutral, but data from CryptoQuant suggests further price declines may occur before a rebound.
Bitcoin Needs Deeper Losses For Strong Rebound Signal
- The Bitcoin Trader Realized Profit/Loss Margin (P/L Margin) is currently at -2.2%, down from -0.60% when prices were at $111,337.
- Historical analysis indicates strong rebounds typically follow margins falling to around -12%.
- Previous instances of margin collapse below -12% occurred in April 2025 and July 2023, leading to significant rebounds.
- A deeper price correction may be required for a strong upward move; sideways trading is also possible.
Bitcoin Market Outlook
- Current Bitcoin price is $109,528, with a weekly loss of 5.51% and a monthly loss of 5.31%.
- Bitcoin’s realized price is approximately $112,000; trading below this level indicates weaker investor confidence.
- To stabilize market sentiment, bulls need to reclaim the $112,000 level, which could halt the correction and lead to targets around $116,000.
