Bitcoin (CRYPTO: BTC) tapped $65,000 on Wednesday as several on-chain indicators flash the strongest accumulation signal since the 2022 bear market.

Bitcoin Enters Historically Undervalued Zone

In a Milk Road interview on July 14, Bitcoin Magazine Pro analyst Matt Crosby said Bitcoin may still revisit lower levels, but current valuations create an "asymmetric opportunity" as technical, fundamental and macro indicators converge near historically important support zones.

Bitcoin recently dropped to a range between $57,000 and $58,000, placing its valuation in the bottom 5% of historical readings.

The comparable readings appeared near the 2018 bear market bottom, March 2020 COVID-19 crash and 2022 bear market lows.

Crosby noted that investors waiting for a precise bottom, usually risk missing a sharp recovery. Bitcoin has historically moved quickly after completing its capitulation phase.

Several long-term indicators continue to point toward the $48,000 to $53,000 range as a potential downside support zone.

Bitcoin’s realized price sits near $53,000, while the long-term holder realized price is around $50,000.

The asset continues to trade near its 200-week moving average, which has served as a major bear market support level throughout most of its history.

Has Time-Based Capitulation Ended?

Crosby described Bitcoin bear markets as having two stages: a sharp price-based capitulation followed by months of sideways trading that wears down investor sentiment.

During the 2022 bear market, Bitcoin spent roughly 156 days between its initial crash below $20,000 and its final low near $16,000.

Applying the same timeline to the current cycle pointed to around July 12 as a possible end to the time-based capitulation period.

Bitcoin historically rallied sharply within 100 days after completing similar phases, though Crosby said the current bottom can only be confirmed in hindsight.

Despite recent outflows, spot Bitcoin ETFs have reduced their total holdings by only around 18% from their peak, suggesting longer-term investors have maintained significant exposure through the downturn.

Image: Shutterstock