Bitcoin's Realized Dominance Suggests a Market Reset

A new study from CryptoQuant suggests that Bitcoin is approaching a market reset, with its realized dominance showing signs of a bottom formation.

The metric in question, Realized Dominance, tracks where realized capital is concentrated between Short-Term Holders (STH) and Long-Term Holders (LTH), indicating whether speculation or conviction controls the market.

Historically, Bitcoin tops form when STHs dominate realized capital, while bear markets create a transition towards LTH control. Currently, Bitcoin's Realized Dominance is at 27.6%, placing it in the undervaluation zone, historically associated with major cycle bottoms.

The study notes that speculation has already been flushed out, and long-term holders are regaining control, but warns that another capitulation phase may be needed before the next accumulation cycle begins.