The STHs are finally leaving an extreme discomfort zone.

Historically in this cycle, when STHs were holding average losses greater than 10%, BTC tended to enter a capitulation phase, during which a bottom was forming.

Today, we are finally exiting that phase.

👉 STHs are breathing a bit more easily, even though they are still in the red, with an average loss of around 6.4%.

— 💡 This is an approximate value, based simply on the gap between the BTC price and the STH cost basis.

It’s important not to think that having unrealized profits in the market is a bad sign.

On the contrary, and especially when it comes to STHs, holding profits is much easier than holding losses. —

Of course, this only holds true up to a certain point.

When unrealized profits become too heavy 🔴, they often trigger distribution phases.

Now we’ll need to see how the market evolves, especially as we move closer to the STH cost basis.