Bitcoin may be approaching a cyclical market low as selling pressure shows signs of exhaustion, according to ARK Invest’s latest The Bitcoin Quarterly report.
The leading digital asset fell around 4% to $58,544 by quarter-end, closing below major technical and on-chain averages after an early rally failed to hold above them.
While ARK views that configuration as historically bearish and said Bitcoin has yet to revisit its realized and investor cost bases, implying potential downside toward $49,000-$53,000, the firm also sees evidence that selling pressure is becoming exhausted.
According to the report, supply in loss surpassed supply in profit, long-term holders accumulated to an all-time high of 14.85 million BTC, and realized-loss velocity briefly exceeded profit-taking, a combination ARK said has historically clustered around capitulation phases.
Meanwhile, realized volatility remained subdued despite the price decline, reflecting a more mature and orderly market.
