Bitcoin Breaks Free From Bear Market Toughest Phase

The Bitcoin market is undergoing significant changes at its bottom formation.

According to on-chain data, capitulation-style selling by long-term holders has slowed down, and strong buying pressure has absorbed the lows formed in late June.

Cryptocurrency analytics firm Glassnode notes that the current market driver is shifting from pure risk appetite to a reaction to U.S. dollar liquidity, and Bitcoin appears to be attempting to break free from the toughest phase of the bear market.

Despite macro uncertainties, selling exhaustion provides a foundation for price rebalancing against a backdrop of a weakening U.S. dollar.