As Bitcoin markets fail to improve, analysts have been looking into the behavior of the different investor cohorts in the market.
“One of the cornerstone cohorts in this framework is long-term holders (LTH), known to be less sensitive to short-term price fluctuations,” said CryptoQuant analyst ‘Darkfost’ on Tuesday.
Currently, long-term holders are sitting on an average profit of roughly 74%, but this profit margin continues to decline as the price moves closer to the LTH cost basis, currently estimated at around $38,900, they said.
Bear Market Breaks Below Cost Basis
The analyst looked at historical cycles, noting that each bear market has been characterized by price breaking below this cost basis, “triggering a final capitulation phase marked by realized losses of around 20%.”
Only when this happens, and markets begin to recover and enter a bull phase, the analyst noted.
BTC Drifting Toward the LTH Pain Point
“Looking at historical precedent, each bear market has bee
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