ETF inflows are a good thing, but no matter how beautiful the on-chain data is, it cannot withstand the liquidity vacuum. Don't rush to call for a bull comeback.

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KingAlpha
Bitcoin:
Here's why Bitcoin's Q3 price rally could face a liquidity test
ETF demand is returning, but weak liquidity could decide Bitcoin's next move The pain for Bitcoin [BTC] bulls may be nearing its end.
Notably, Bitcoin's latest on-chain data suggests the market is entering the final stage of its bearish phase. During this period, investors typically realize heavy losses as they sell below their cost basis. As this selling pressure fades, Bitcoin has historically found a bottom before rebounding.
Supporting this view, Bitcoin's Realized P/L
Ratio has fallen to -0.35, its lowest level in 43 months. The indicator measures realized profits against realized losses. A deeply negative reading shows that losses are dominating, signaling widespread capitulation. In previous market cycles, similar levels have often coincided with major Bitcoin bottoms, making the metric a closely watched signal for long-term investors.
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