- CryptoQuant analyst Darkfost identified an uncommon on-chain signal where the temporary holder cost basis dropped below the patient holder metrics.
- Bitcoin maintained support levels above $60,000 despite a large entity selling 3,588 BTC worth $216 million.
- Analysts are closely monitoring the $67,248 resistance level as the potential trigger for the next market breakout.
CryptoQuant analyst Darkfost confirmed on July 18 that Bitcoin’s short-term holder cost basis dropped below the long-term holder cost basis to trigger a rare Bitcoin bottom signal as the price held above $60,000. The correction's ending. This specific crossover pattern historically marks the terminal phase of a multi-month market downturn before a substantial trend reversal begins. Investors are watching closely. Our Live Bitcoin Price Chart: BTC Holds Support at $64,044 tracks these price levels daily as the market shifts. Buyers are returning very quickly.
The speculative holder cost basis fell from $112,500 to around $69,000 as new buyers continued purchasing the asset at lower prices—a clear sign of capitulation. Market sentiment is changing. Committed holders refuse to sell their assets because they anticipate a swift recovery once the current distribution phase finally completes. Whales are accumulating coins aggressively.
On-chain metrics indicate that the market has survived the worst of the recent capitulation event without breaking essential macro support structures. Volatility is decreasing now. Spot market demand must improve to validate this analytical signal and push the digital asset into its next expansionary phase. Strong hands are leading.
How the Cross Confirms a Bitcoin Bottom Signal
The crossover requires a three-day confirmation window which has now successfully completed to validate the structural shift in holder behavior. Weak hands are selling. "This doesn’t mean the bear market ends the moment the signal fires," stated CryptoQuant analyst Darkfost in his market update. It shows the final phase.
Engaged investors are holding their coins tightly while excluding assets that have remained completely untouched for more than seven years. Supply is shrinking fast. We are seeing a textbook migration of supply from casual traders to highly disciplined buyers who ignore daily volatility. This movement strengthens the floor.
Past cycles show that when brief holder costs drop below dedicated costs, the market is usually in a deep value zone. Smart money buys here. This crossover has preceded every historic bull run in the asset's history, serving as a trustworthy Bitcoin bottom signal. The bottom is forming.
Whales Absorb Over $216 Million in Sell Pressure
Big institutional players absorbed huge retail selling pressure after one massive entity sold 3,588 BTC worth approximately $216 million last week. Prices held above $60,000. Accumulation addresses of large-scale holders continue to show rising inflows even as spot exchanges report adverse net outflows during this unstable period. Whales are buying everything.
You can see this trend in our analysis of how Bitcoin Whales Move Billions in July: Analyzing the Impending Price Breakout as the market turns. Retail investors are panicking. Seasoned market participants are using this panic to build gigantic positions before the next supply shock drives prices upward. This creates a firm base.
Exchange supply has contracted significantly because coins are migrating into cold storage wallets that have no history of selling assets. Liquid supply is low. Any abrupt increase in spot market demand will likely cause a quick upward price movement due to this illiquid supply. The stage is set.
Analysts Watch the $67,248 Resistance Level
Market experts are tracking the critical resistance level of $67,248 because a clean breakout above this price point will confirm the bull run. The technical setup looks bullish. Trading volumes are stabilizing as the market absorbs the leftover selling pressure from government entities and distressed miners over the coming weeks. Momentum is building slowly.
The Fear and Greed Index currently sits near 28, showing that fear still dominates retail sentiment despite the favorable on-chain metrics. Smart money ignores this fear. Spot exchange inflows recently surged to 49,000 BTC, which indicates that whales are preparing for heightened volatility in the near term. The market structure remains intact.
Average exchange deposits doubled to 2 BTC recently to indicate that professional activity is starting to pick up behind the scenes. This confirms whale interest. Casual traders continue to distribute their holdings while enterprise buyers quietly accumulate these coins to build their multi-year portfolios. A breakout seems imminent.
Future price action will likely depend on whether spot exchange-traded fund inflows can reverse their prior negative trend to provide sustainable buying power. Institutional demand will drive growth.