Analyst: Bitcoin has exited the capitulation phase and is now in a transitional zone for rebuilding momentum

This week, after Bitcoin hit a five-week high of $65,700, analysts believe the asset has moved out of the previous “capitulation” phase and is entering a transitional area for momentum reconstruction.

Swissblock said the current zone is where “new momentum starts or weakens,” and the next key step is to “reclaim the ignition line” to fully confirm the bullish trend’s continuation.

Looking back at historical price action, Bitcoin entered a sell-off zone after falling below $70,000 in early June. By late June, it also briefly touched a cycle low of around $58,000. But over the past three weeks, the BTC price has rebounded by about 12%, suggesting momentum is gradually being repaired.

Separately, CryptoQuant analyst Darkfost noted that the current MVRV metric shows Bitcoin is at an undervalued level seen during more than 95% of its historical time, indicating its value is severely underpriced.

Separately, CryptoQuant analyst Darkfost also pointed out that Bitcoin has spent 95% of the time at elevated levels of its market value to realized value (MVRV) ratio, suggesting that its value is being seriously undervalued.

On the technical side, trader Darkfost believes that $65,000 is the key resistance level since July. The longer the BTC price stays at this level, the greater the likelihood of breaking through the resistance, especially under the trend of rising lows over the past three weeks.

Alphractal founder Joao Wedson also said that if BTC breaks above $66,000, the next target will be the structural midline at $66,700. Historically, this level has been a highly reliable reaction zone, and the bears are likely to regain control here as well.

As of the time of writing, Bitcoin is trading at $66,210, up slightly more than 1.47% on the day.

#Bitcoin on-chain data